[R]1:00PM NY, 5:00 PM Frankfurt European markets tumbled on subprime worries.[/R]

European stock markets closed steeply in the red on Thursday on growing concerns of slowing global economy due to troubles in U.S. credit markets. The subprime jitters were sparked by news that French bank BNP Paribus will suspend redemptions from three U.S. security backed funds because it was unable to properly value their assets.

Following the news, European Central Bank stepped into the money market by allocating 94.841 billion euros in a quick tender at 4.0%. The Fed Reserve followed suit, adding $12 billion to U.S. markets. In the currency markets, the euro fell 0.7% at $1.37 and the British pound lost 0.4% at $2.0277 against the dollar. After two consecutive sessions of solid gains, European markets tumbled. France led decliners with a drop of 2.2%, followed by Germany, down 2%, and the U.K. losing 1.9%.

Dutch financial-services provider Fortis lost 2.1% despite higher Q2 profit. Shares of Aegon lost 1%. After the Dutch financial-services firm announced Q2 profit drop and a surprise share-buyback program amounting to 1 billion euro. Credit Suisse declined 2.4%.

In Frankfurt financials were also under pressure, with Deutsche Bank falling over 2.4%. Commerzbank said its Q2 net income more than doubled, beating expectations. However, Commerzbank shares slipped 4.3%. Elsewhere, water company RWE dropped 1.4% after recent gains. The company posted 59% profit growth in the first half and prompted an upward revision to its 2007 earnings forecast.

In Paris bank BNP Paribas sank 3.4% after it said it suspended three funds, blaming a lack of liquidity in the U.S. subprime mortgage market. Shares of French bank Natixis slid 5.6%. Among companies posting earnings results, insurance giant AXA fell 3.6%, despite higher first-half net income. Air France-KLM posted a 70% increase in fiscal first-quarter profit, but shares of the airline declined 6.3%, as investors cited weak cargo activity and lower gross margins.

In London financial stocks were also notable loser, with Royal Bank of Scotland, falling 2.4%. Man Group, the world''s largest publicly traded hedge fund manager slipped 6.7%, while Standard Life lost 6.5%.


[R]11:30AM Market averages tumbled, hurt by credit markets worries.[/R]

Renewed mortgage markets worries sent U.S. market averages sharply in the red, with the Dow Jones sliding more than 240 points. The subprime jitters were sparked by news that French bank BNP Paribus will suspend redemptions from three U.S. security backed funds because it was unable to properly value their assets.

Tension intensified after a move by the ECB to provide more cash to credit markets. The Fed Reserve followed suit, adding $12 billion to U.S. markets to help ease liquidity constraint. Citigroup (C: chart) fell 3.7% to lead a slump in the financial sector. JP Morgan Chase (JPM: chart) dropped 3.5%, while Bear Stearns (BSC: chart) dropped 2.6%.

Retailers’ monthly sales results built on the negative sentiment. Pacific Sunwear (PSUN: chart) tumbled 11.2% after posting decline in its same-store sales. American Eagle Outfitters (AEOS: chart) dropped 3.4% amid lower-than-forecast same-store sales in July. However, there was upbeat news, too, with Children''s Place Retail Stores (PLCE: chart) jumping 7.7% on stronger-than-expected results.

In other corporate news, Internet telephone company Vonage Holdings (VG: chart) posted a narrower Q2 loss on lower marketing costs. The stock rose 9%. In late morning trading, the Dow fell 107.96, or 0.79%, to 13,549.90 after earlier falling as much as 241 points. The broader Standard & Poor''s 500 index fell 12.10, or 0.81%, to 1,485.39, while the Nasdaq composite index fell 3.63, or 0.14%, to 2,609.35.


[R]10:00AM New York, 7:30PM Mumbai – Sensex in Mumbai trading reversed its earlier gains and fell sharply in the afternoon trading.[/R]

Sensex in Mumbai trading fell 207.83 points or 1.36% to close at 15,100.15 on weak trading sentiment. In the broader market 1,660 stocks fell, 1,065 increased, and 51 were unchanged.

Daily turnover on the Bombay Stocks Exchange increased to 5,036 crore rupees from 4,732 crore rupees. Of the thirty stocks in index, 23 lost ground while seven increased in value.

Reliance Communication declined 1.3% to 536 rupees after completing its private placement offer of $340 million in Reliance Telecom Infrastructure. The 5% private placement values the company at $6.75 billion.

Banks and software export stocks led the decliners.

Bank of Baroda plunged 5% to 298 rupees, followed by 4% loss in State Bank of India to 1,645 rupees, 3.1% loss in Kotak Mahindra Bank to 768 rupees, and 3% decrease in Allahabad Bank to 92 rupees. ICICI Bank fell 0.4% to 887 rupees on the news that the company has still not received the clearance for international offering to raise capital.