[R]4:00PM NY, 10:00 PM Frankfurt, 1:30AM Mumbai – Global Markets[/R]

Yields edged lower on 10-year U.S. bonds and closed at 5.01% and 30-year bond rose to close at 5.12%.

Crude oil advanced 32 cents to close at $71.41 per barrel, natural gas was closed down 1 cent to $6.75 per mBtu, and gasoline futures gained 1.57 cents to close at 226.44 cents per gallon.

Gold gained $3.80 to close at $655.40 per ounce, silver lost 5 cents to close at $12.69 per ounce, and copper futures gained $166 to close at $7,813 per metric ton.

In New York trading, manufacturing orders, home resale data and buyout worth $11 billion lifted market sentiment in the morning trading. The average rose in the morning trading and continued to move higher with the strength in brokerage, techs, energy and financial stocks.

Teck Cominco, copper miner, agreed to pay $3.89 billion in stocks and cash for Aur Resources. Kraft Foods (KF: chart) offered $7.2 billion to purchase biscuits and cookie operations of Group Danone (DA: chart). Danaher (DHR: chart) sold its power quality business that makes equipment and components for power transmission for $280 million to Thomas & Betts Corp (TNB: chart). The division had $130 million in sales.

The Commerce Department reported that May factory orders edged 0.5% lower on account of volatile aircraft and defense orders. National Association of Realtors’ index of home resale fell for the third month in a row indicating that home market is still softer than expected.

Movie Gallery (MOVI: chart) fell 65% on the news that it is in violation of its financial covenant with its lenders on lower than expected sales in the second quarter. Wendy’s (WEN: chart) jumped 3% on a hostile letter from activist Nelson Peltz contending that his investment company Triarc is a natural buyer. Oracle (ORCL: chart) gained a fraction after rival SAP admitted that some software downloads from the company web sites were ‘inappropriate’. Airlines stocks gained after Continental reported higher than expected revenue growth in June. Continental (CAL: chart) surged 11% and lifted American Airlines parent AMR (AMR: chart) and UAL Corp (UAUAU: chart) parent of United Airlines. Ford Motor company dropped 2% on reporting 8.1% decline in sales. Chrysler reported 1% loss in sales and GM sales fell 21%. Caterpillar dropped 3% on downgrade from UBS on rising competition from Komatsu in Japan. Avon jumped 3% on an upgrade from Sanford Bernstein.

Latin American Markets closed higher on the back of firmness in New York trading, rising metals prices and falling yields. Mexico led the region with an advance of 2.2%, followed by 0.8% gain in Chile and 0.6% rise in Brazil. Rising copper, zinc and sugar prices in international markets supported commodities companies. Mexican bonds fell for the second day after S&P revised the country bond rating upwards.

In Mexico City trading, IPC Index climbed on optimistic outlook on economic growth and rating revision on sovereign bonds. The index climbed 2.2%. American Movil (AMX: chart) led the index with a rise of 3% followed by 1.5% gain in Telmex (TMX: chart). Cemex (CX: chart) closed up a fraction but Homex (HXM: chart) fell. Coca Cola Femsa (KOF: chart) gained 1%.

In Sao Paulo trading, Bovespa Index gained 0.6% led by energy and banking stocks. Petrobras (PBR: chart) led the index with a rise of 2.4%. CVRD (RIO: chart), iron ore mining fell a fraction on worries that demand from China may decline. Banco Bradesco ((BBD) gained 1% but Itau Holdings (ITU: chart) was unchanged. Corporate bonds and asset backed securities sales jumped 17% in the first half in Brazil to $11.5 billion. Ambev, the beverage company, jumped 0.7% but steelmaker Gerdau (GGB: chart) was unchanged.

Asian Markets closed higher led by several markets reaching new records. Hong Kong, India, and Indonesia reached a new record close. Taiwan closed at a seven year high, Thailand at 10-year high, and South Korea closed at near record level. Thailand led the region with a gain of 2.63% followed by 2% in Shanghai, 1.93% in South Korea, 1.7% in Hong Kong and Philippines. Rising demands manufactured exports, metals and energy drove several indexes to new highs.

In Tokyo trading, banks, auto and manufacturing companies closed higher. Komatsu gained 1.4% on a recommendation from Merrill Lynch and revised price target of 4,200 yen. Honda and Toyota edged a fraction higher on renewed confidence in U.S. auto sales. Kobe Steel fell 2%, JFE Holdings dropped 0.3%, and Nippon Steel declined 0.5% on worries that rising raw material costs will hurt profit. Ahead of June subscriber data cell phone carriers faced some volatility. Softbank, third largest carrier jumped 3%, KDDI dropped 2.5% and NTT DoCoMo, the largest carrier, fell 0.5%. oil refiners continued their climb led by a higher crude prices in the region. Cosmo Oil jumped 3% and Nippon oil gained 0.5%.

In Shanghai trading, CSI 300 Index climbed 2% after falling 7% in the last three sessions. The yuan dipped below 7.60 against dollar for the first time since July 2005 lifting bank and property stocks. China Vanke, largest real estate operator, rose 4.1% and China Merchants Bank gained 2.3%.

In Hong Kong trading, China Shenhua soared 6.6% on the company statement that it plans to raise $6.3 billion in public offering, largest ever offering in China. The operator of Hong Kong Stock Exchange, Hong Kong Exchanges & Clearing Ltd surged 7% to a record high on optimism that the July 5th announcement from government will expand investment from China boosting stock market turnover.

In Mumbai trading, Sensex 30 gained 1% on lower than expected inflation data and news in the telecom sector. Bharti Airtel placed order worth $900 million to Nokia Siemens. Spice Telecom IPO of $120 million was oversubscribed 37 times. Larsen Toubro plans to sell its entire stake of 11.5% in UltraTech cement. Cement and banking stocks gained during the session.

European Markets closed higher across the region on improved earnings outlook, rising markets in the U.S., and buyout news. Germany led the region’s gain with 1.2% followed by 0.9% rise in Italy and Belgium, 0.7% advance in UK and France and 0.6% increase in Switzerland and the Netherlands.

In Frankfurt trading, DAX index closed up 1.2%. SAP fell on company admission that it may have inappropriately downloaded software code from Oracle. SAP fell 2.1%. Broker upgrades of several stocks in Germany including MAN, Siemens and Scania and Nokia in Nordic markets lifted local averages. MAN jumped 4%. Deutsche Bahn, German railroad workers staged a strike this morning disrupting services in most cities. The union members are demanding higher wages. The Bahn is targeted for privatization by the government in the next two years. Volkswagen sales in the U.S. jumped 15% in the month of June. Deutshce Wohnen dropped 6% on Berlin based Behag GmbH acquisition valued at 1.84 billion euros. Heidelberger Druckmaschinen jumped 6% on the news that the buyout fund Centaurus Capital based in London holds 5% stake in the company.

In Paris trading, Carrefour rose 3% on local news reports indicating that some members of controlling family may want to sell shares. Group Danone gained 1.3% on the news that it is in talks to sell its cookie and biscuits division to Kraft Foods. Vivendi added 1% on the news the company CEO of its mobile unit bought stocks worth 16 million according to regulatory filings. Business Objects (BOBJY: chart) jumped 2.3% on an upgrade from UBS and target price revision to 37 euros.

In London trading, FTSE 100 Index closed higher 0.8%. Rising metal prices, positive outlook on second quarter earnings, broker upgrades and regional buyout news lifted the averages. Copper miners led the advancing issues. Anglo American gained 2.1%, Xstrata rose 1.5%, and Rio Tinto increased 0.7%. British Airways increased 1.4% on the news that it has been awarded rights to fly from U.S. cities to European destinations. The possible cities in Europe that the airline is considering are Paris, Amsterdam and Milan. Greene King surged 8% on the news that the company will buyback $200 million of its stock and create a real estate unit for its pub locations. Home Retail Group jumped 3% on unsubstantiated buyout rumors. Software developer Autonomy jumped 13% after company said that its second quarter sales will be higher than estimated.