5:00PM NY, 11:00 PM Frankfurt, 2:30AM Mumbai – Global Markets

Yields edged lower on 10-year U.S. bonds and closed at 5.17% and 30-year bond rose to close at 5.25%.

Crude oil gained 35 cents to close at $68.00 per barrel, natural gas up 11 cents to close at $7.92 per mBtu, and gasoline futures rose 3.54 cents to close at 226.01 cents per gallon.

Gold gained $2.80 to close at $658.70 per ounce, silver gained 9.5 cents to close at $13.26 per ounce, and copper futures increased $159 to close at $7,541 per metric ton.


In New York stocks rallied led by a rise in energy, tech and retail stocks. Economic reports on inflation, capacity utilization and consumer confidence brought buyers to the table. Consumer Price index rose 0.7% in May and core rate of inflation, excluding food and energy prices, gained 0.1%. Investors cheered and saw little trouble on the inflation front lifting stocks across sectors and bond yields edged lower. Consumer sentiment index declined on falling home values and rising gasoline prices. Current account deficit widened to $192.6 billion in the first quarter on higher energy prices. Empire State manufacturing survey for the month of June showed a sharp rise in manufacturing activity.

MasterCard International (MA) saw nearly 5% jump on the economic news and other large retailers gained as well. Intel (INTC) jumped 5% on a recommendation from Goldman Sachs. Monsato Co. (MON), largest seed producer jumped 2.5% on the earnings revision from the company between $1.75 and $1.80 from the previous forecast of $1.60 and $1.65 per share.

Nymex (NMX), operator of commodities exchange rose 1.7% on the news reports that the exchange is exploring possible merger with NYSE Euronext, Deutsche Boerse and Chicago Board of Trade (BOT). Sherwin-Williams (SHW) gained 2.4% on the ruling from New Jersey court that the company will not have to pay for lead paint related claims from local counties and cities in the state. The ruling lifted stocks of other paint makers including DuPont and Lyondell Chemical.

Penn National Gaming (PENN) jumped $12 to $62.12 on the news that the company has accepted a bid from Fortress Investment Group (FIG) for $67 per share or $6.1 billion. Isle of Capri and Boyd Gaming jumped on the news as well.

Latin American Markets closed higher led by a 1.6% rise in Brazil followed by 1.0% gain in Argentina and 0.3% increase in Chile and fractional high in Mexico. Markets in the region surged in sympathy with a rise in New York trading reflecting benign core Consumer Price Index data for the U.S. Real in Brazil and peso in Mexico gained on the hopes that central banks have more room to cut interest rates in both countries. Bond in both markets gained.

In Sao Paulo trading stocks rose 1.5% today and 4.2% for the week. In the last four years inflation has been tamed to 3.2% from 17% and currency has appreciated 83% against dollar. Petrobras led the list of rising stocks with a gain of 2.5% on the news that oil production will increase 10% at the end of the third quarter this year. Steel, telecom, mining and retail stocks rallied. CSN, Usinimas and CVRD closed up 2%. Banking stocks rallied for the third day of this week. Bradesco (BBD) added 4% and Itau (ITU) gained 2.5% in ADR trading in New York reflecting similar gains in Sao Paulo.

In Mexico City trading stocks closed higher on a decline in bond rates and higher peso. The rally in the morning was led for the second day by retailers, telecom and home builders. Telmex and American Movil (AMX) jumped 2.5%, Homex (HMX) traded higher but at closed a fraction lower.


European Markets closed higher bolstered by inflation data in New York and investment from Qatar Investments and deals news. Markets across the region closed up sharply with a gain of 2.3% in Germany and 2% in Norway. U.K., Italy, the Netherlands, Spain and Switzerland gained 1.2%.

In Paris and Frankfurt trading insurers, realtors, and banking stocks closed higher. Hypo Real Estate jumped 4.4%, AXA and Allianz were up 2.3%, followed by 1.7% gain Deutsche Bank. Commerzbank jumped 3% on the news that the City of Berlin has agreed to sell its 81% stake in Landesbank Berlin Holding to community savings association DSGV for 4.6 billion euros. Commerzbank was considered a front runner for the deal. Broker recommendation for Siemens lifted the stock 4.3%, seven year-high on the hopes that orders from China and India will support further rise in earnings. E.ON gained on a ‘buy’ recommendation from Goldman Sachs. Norddeutsche Affinerie surged 11% on the news that Austrian company A-Tec Industries has taken 10% stake in largest European copper refiner.

Energy stocks across the region gained on higher oil prices. Total (TOT), Royal Dutch Shell, British Petroleum (BP), Norsk Hydro (NHY) and Stat Oil (STO) advanced at least 2%.

In London trading retailers, miners, utilities and energy companies participated in rally driven by U.S. economic data. News of Qatari backed investment fund lifting its stake in J. Sainsbury to 25% with the addition of 7.1% helped stock to surge 4.4%. The news lifted other stocks in the sector including 2.6% gain in William Morrison and 1.7% in Tesco. Asda and Tesco dominate UK grocery retail market. Lonmin Plc rose 4.8% on target price revision from Morgan Stanley to 5,075 pence. Trace Group, a subject of management led buy-out, soared 15% on a bid from Internet based personal finance service company for 25.6 million pounds. Wolseley, distributor of heating and plumbing equipment, jumped nearly 5% on the takeover rumors.


Asian Markets closed higher in sympathy with higher closing in New York in the overnight trading led by a sharp rally in several markets. Taiwan led the region with a rise of 1.45% followed by 1.2% gain in Philippines and Thailand, 0.7% advance in Hong Kong and Japan, Australia and Shanghai rose 0.5%. Korea closed at a record high. Bank stocks in Hong Kong lifted the index.

In Tokyo trading steel companies, high tech exporters and automobile makers led the rally. U.S. dollar is now trading at 54-month high against the yen lifting stocks of Toyota, Sony, Nippon Steel, Godo Steel, Marubeni, and Mitsubishi. A day ago Nippon Steel said that it will spend $50 million to increase its stake in Godo Steel. Honda jumped 2% and Toyota added 1.6%. The yen dropped as low as 123.13 to a dollar. Tokyo Stock Exchange acquires 4.99% stake in Singapore Exchange for $303 million or 37.4 billion yen.