4:00PM New York, 10:00PM Frankfurt, 1:30 AM Mumbai – New York rallied in the late afternoon. European markets closed mixed on takeover news.

Dow Jones closed up 150.38 to 13,362.37, Nasdaq advanced 7.60 to 2,553.87, and S&P 500 increased 10.61 to 1,465.88.

FTSE 100 Index in the U.K. closed down 109.50 to 6,250.60, in Tokyo Nikkei 225 closed at 16,870.98, down 377.91, and Brazil iBovespa lost 41.91 to close at 54,140.59.

Yields edged higher on 10-year U.S. bonds and closed at 4.75% and 30-year bond rose to close at 4.90%.

Crude oil declined $1.68 to close at $76.53 per barrel, natural gas closed 16 cents higher to $6.35 per mBtu, and gasoline futures decreased 7.6 cents to close at 202.96 cents per gallon.

Gold traded lower $3.40 to close at $675.90 per ounce, silver down 6 cents to close at $12.95 per ounce, and copper futures gained $194 to close at $8,137 per metric ton.

On a day when all news is viewed in a negative light, market averages braved in New York trading to climb higher in the final minutes. The trading sentiment remains fractured with a propensity to sell first and ask questions later. Beazer Homes which ones traded as high as $70 in the last twelve months, lost 17% of its value on rumors that company is facing financial crisis. The company denied rumors but the stock still closed at a new low. Oil refiners fell for the third day in a row on weak prices in crude oil. Valero, Tessoro, and other oil complex stocks dropped as much as 5%.

Economic data in the U.S. on housing and manufacturing did not help the sentiment either. Housing market index of pending new homes sales declined and ISM manufacturing index for July declined more than expected. Tech stocks rallied in the final fifteen minutes lifting broader averages. Cisco jumped 3%, Apple increased 2.5%, Microsoft added 1% on a mad dash at the end. European stocks did not do this well. Indexes in Europe closed with losses of 1.5% when U.S. averages were still falling. Asian markets suffered their worst declines in the last five months led by a sharp fall in bank stocks in the region.

Nikkei 225 Index fell 2.2% or 377.91 to 16,870.98 on weakness in financial stocks across the region. All markets in Asia fell with the losses between 3% and 4%. Taiwan, Korea, and India fell nearly 4% and led the region’s decline. Hong Kong, Australia, Singapore, Thailand declined 3%, and Philippines lost more than 2%. The yen in trading against international currencies gained on the possible fall out to the carry trade investment mechanisms.

Latin American Markets traded in a volatile pattern but managed to recover most of the day’s losses. Mexico led the region with a loss of 2.0% followed by a loss of 0.65% in Chile, 0.14% in Argentina and 0.09% in Brazil.

In Sao Paolo trading among ibovespa index Telemig celular led the decliners with a loss of 6.7% followed by more than 5% loss in Souza Cruz, CESP, and Cyrela. Of the 59 stocks, 51 closed lower and 8 closed higher. Braskem SA, the petrochemical and electricity producer led the gainers with a rise of 2.4%.


1:00PM NY, 5:00 PM Frankfurt European markets lost ground, dragged by credit markets worries.

European stock markets lost ground to close steeply down Wednesday, pressured by weaker financial stocks amid global worries about credit markets. Subprime mortgage concerns re-emerged on fears of a potential liquidation of a U.S. mortgage lender and fears of losses at some of Macquarie Bank''s hedge funds and a third Bear Stearns fund. The U.K. and France tumbled 1.7% each, followed by Germany which declined 1.5%.

In Frankfurt Deutsche Bank declined 2.1% in news it took a considerable charge related to the revaluation of its leveraged finance portfolio. Car maker BMW dropped 5% after its Q2 net profit slipped 4%. Among other movers, washing powder maker Henkel slid 3.5% after the firm posted disappointing sales.

In Paris French bank BNP Paribas dropped 1.3% although it reported 20% earnings rise in Q2. Elsewhere, drugmaker Sanofi-Aventis lost 3.4% after the firm reported Q2 profit drop of 6% with sales down 2%.

In London of Barclays dropped 2.3% after American Home Mortgage Investment said it might liquidate its assets after failing to meet margin calls. Among other financials, hedge fund operator Man Group and 3i Group fell more than 3.5% each.

HSBC slipped 2.8% amid potential losses from the U.S. subprime mortgage market. The mining sector also posted weakness, with shares of Rio Tinto and BHP Billiton falling more than 4.4%. British Airways fell 2.9% after it was imposed a fine of about 250 million pounds to settle price-fixing probes with U.K. and U.S. regulators


11:30AM Housing and financial stocks led decliners.