4:00PM NY, 10:00 PM Frankfurt, 1:30AM Mumbai – Global Markets

Yields edged lower on 10-year U.S. bonds and closed at 5.07% and 30-year bond rose to close at 5.19%.

Crude oil advanced $1.20 to close at $68.97 per barrel, natural gas up 5 cent to close at $6.93 per mBtu, and gasoline futures fell 0.77 cents to close at 225.46 cents per gallon.

Gold lost 50 cents to close at $644.80 per ounce, silver lost 22 cents to close at $12.32 per ounce, and copper futures lost $109 to close at $7,420 per metric ton.

In New York trading, afternoon rally lifted averages to their day’s high largely on tech stocks, falling interest rates and durable goods report. The orders in May dropped 2.8% after gaining 1.1% in April. Stocks of financial brokers rallied after worries related to sub-prime lending eased. Bear Stearns, Lehman Brothers and Goldman Sachs advanced nearly 3%. Two deals worth $5 billion were reported today, Guitar Center agreed to a buyout for $2 billion from Bain Capital and CommScope agreed to purchase Andrew Corp for $2.7 billion. Guitar Center (GTRC: chart) jumped 20% and Andre Corp (ANDW: chart) surged 11%.

Nike (NKE: chart) jumped 8% to close at record level of $58.29 on 34% rise in earnings. Oracle gained 2.8% after the company reported earnings growth of 23% and ConAgra gained 5% on fiscal fourth quarter profit jumped three times. H&R Block (HRB: chart) gained 4% on the news that the activist shareholders are seeking board seats. Best Buy (BBY: chart) jumped 5% after the company reported 30% increase in dividend and revised stock buyback plan of $5.5 billion. McCormick (MKC: chart) jumped 8% on the earnings of 31 cents in the second quarter and company revised outlook for earnings growth between 9% and 11% gain from a year ago.

Latin Markets rebounded across the region led by 1.4% rise in Argentina, 0.5% gain in Brazil, 0.3% increase in Chile and added 0.2% in Mexico. Venezuelan Bolivar fell nearly 3% in parallel currency market to 4,180 to a dollar after ExxonMobil and ConocoPhillips decided to abandon their operations in largest oilfield in the country.

In Mexico City trading, IPC Index edged 0.2% in Mexico. National Statistics Institute’s economic activity index in April rose to 3.2% in April from a year ago. The index which approximates rise in GDP indicated that the economic expansion may be picking up. Late rally in New York helped large cap Mexican stocks advance. Telmex, American Movil, and Homex gained between 1% and 2%.


In Sao Paulo trading, Bovespa gained 0.3% on a late rebound in New York trading. Petrobras, TAM, CVRD and Itau gained more than 1%. TAM jumped 3%. Ethanol and sugar producer Cosan fell 2% today and dropped 10% in the last two days the after the company said that it plans a listing in New York and raise funds for expansion by issuing a different class of stock. CCR Rodovias jumped 4% on a broker report that the company will bid for toll road operation in Mexico.

European markets closed lower across the region on profit taking in mining, banks and insurance stocks and worries related to health of the U.S. economy. Fall in durable orders in May months hurt market sentiment. Norway led the region with a loss of 1.2% followed by a decline of 0.8% in Germany, 0.7% in the Netherlands, and 0.5% in Spain, Switzerland and the U.K.

In Frankfurt trading, DAX Index fell 0.8%, fifth decline in a row, on worries that rate hike in Europe and slowdown in the U.S. will hurt earnings of banks and auto companies. proSiebensat.1 Media jumped 4% on the news that it will be merged with SBS Broadcasting Group valued at 3.3 billion euros. Deutsche Bank, Deutsche Boerse and Deutsche Telekom fell nearly 2%. Axel Springer advanced 0.8% on the news that it has acquired 41% stake in French women’s website Aufeminine.com and plans to buy rest of shareholders as well.

In London trading, FTSE Index fell 0.5%. Northern Rock stock fell 12% after reporting that earnings for the current year will be at 15%, lower than 17% average expected by analysts. The news dragged stocks of other mortgage lenders HBOS, Bradford Bingley and Alliance Leicester by 2.5%. Home builder George Wimpey fell 2.5% after the company said that market conditions for the second half less favorable. AstraZeneca jumped 3% on a report that its experimental drug many benefit diabetes patients in a trial. Vodafone Group jumped 2.4%. BHP Billiton fell 4% in London trading and fell nearly 2% in Sydney trading.

OMX Group fell 5% on the report in Financial Times that Swedish government may oppose Nasdaq Stockmarket Inc bid to acquire the stock market operator. European Union vetoed Ryanair plan to acquire Aer Lingus for $2 billion. Gaz de France and Suez jumped 1% on a news report in Le Figaro that merger proposal between two utilities may be revived.

Asian Markets fell for the fourth day only with steeper losses after indexes retreated from record levels. Australia and Philippines led the region’s decline with a loss of 1.9%. Indonesia and Japan followed with a loss of 1.2%. South Korea fell for the third day with a loss of 1%. Shanghai rebounded with a gain of 2.7% followed by 0.4% gain in Thailand.

In Tokyo trading, weak commodities prices and worries of exports to the U.S. left stocks lower. The yen rebounded from 50-month low for the third day. Retail sales in May month gained 0.5% from April. Auto sales declined 4.5% but food and beverage sales jumped 1.7%. Exporters continued to slide led by 2.8% decrease in Nikon, 2.2% slide in Canon, 1.8% decline in Sony, 1.7% fall in Toyota. Marubeni and Mitsui fell more than 3%.

In Shanghai trading, CSI Index rebounded 2.7% bucking the regional trend. PetroChina is in the process of selecting investment bankers for its offering of $6 billion in Shanghai. According to Bloomberg News UBS is appointed as lead manager for the offering. Shanghai Automotive gained 4% after the government reported that profit for thr first five months at industrial companies controlled by the government soared 42% to $120 billion on 27% increase in sales. Shanghai Zhenhua Port Machinery Co., construction and port crane maker jumped 7%.

In Hong Kong trading, Hang Sang Index lost 0.4%. Hong Kong market affirmed the downward trend in the U.S. Melco International, casino operator in Macau, soared 7% on the news that it will operate Playboy Casino. Cnooc and PetroChina fell in sympathy with falling oil prices. China Mobile dropped 1.6% and HSBC Bank lost 0.8%.

In Sydney trading, Index corrected 2% ahead of closing of fiscal year at the end of June. Falling metals and oil prices did not help either. BHP Billiton fell 1.8%, National Australian Bank dropped 2% but Fortescue Metals lost 9%.