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

Yields edged higher on 10-year U.S. bonds and closed at 5.124% and 30-year bond rose to close at 5.228%.

Crude oil gained $1.21 to close at $65.97 per barrel, natural gas lost 6 cent to close at $7.61 per mBtu, and gasoline futures gained 2.42 cents to close at 215.13 cents per gallon.

Gold gained $8.70 to close at $659 per ounce, silver gained 24 cents to close at $13.28 per ounce, and copper futures lost $284 to close at $7,220 per metric ton.

Asian Markets closed higher led by better-than-expected economic growth report in Japan and 73% jump in Chinese trade surplus. Rise of 2.5% in Shanghai led the region followed by 1.5% gain in Singapore and Indonesia, 0.5% advance in Hong Kong and Taiwan and 0.3% increase in Japan. Australia closed 1.3% lower followed by 0.6% fall in Korea.

Japan reported annualized economic growth rate for the quarter ending in March was 3.3%. For the quarter economic growth was reported at 0.8% on higher capital spending by export driven companies. Consumer spending in the quarter was up 0.8%, capital spending was up 0.3%, and GDP deflator for the quarter was down 0.3%.

Expectations of higher consumer spending boosted bank stocks and higher capital spending from export companies boosted stocks of Toyota, Fanuc, Matsushita Electric and Nissan Motor.

In Shanghai trading, China Unicom surged 6%, China Netcom 3%, and China Mobile gained 1%. Speculation in the local press in Hong Kong suggested that China Unicom may sell financial stake to Chine Netcom and China Telecom. In a separate deal China Mobile signed $1 billion outsourcing contract with Ericsson.

Cosco Singapore, unit of largest bulk shipping carrier and shipping repair company in China, jumped 13% on receiving two separate orders totaling more than $1.2 billion.

European Markets closed higher across the region and familiar names on merger rumors affected trading sentiment. Rise of 1.5% in Germany led the region followed by 1.3% gain in Belgium and near 1% advance in Norway, UK, France, Spain and Switzerland.

Steel and mining companies led the rallying stocks across the region. BHP Billiton jumped 2.8%, Rio Tinto and Vedanta gained 2.5%, and ThyssenKrupp rose 2.3% on merger speculation with U.S. Steel Corp and Severstal in Russia. French steep pipe maker Vallourec jumped 3% on the news in Italian newspaper that Russian oil company Gazprom may bid for the company.

Swedish software company Telelogic has agreed to be acquired by IBM for $745 million and asked its board for the approval of merger.

Barclays rose 1.5% on the news report that New York based hedge fund has acquired a stake in the company and requested the bank to drop its offer for ABN Amro. Allianz, insurance company, jumped 2% on the news that the company is evaluating its strategic options lifting Zurich Financial Services by 1.4% and AXA 0.9%. Corporate Express jumped on the news that Centaurus Capital has build stake in the company. Man Group, hedge fund operator based in the UK, gained 2.2% on no news.

Latin American Markets closed higher led by 1.1% gain in Mexico, 0.95% rise in Brazil, 0.7% increase in Chile and fractional decline in Argentina. Mexican peso dropped for the third day. Brazil trade surplus for the week ending June 10 rose to $746 million, from $323 million in the previous week. Central Bank lowered interest rate by 0.5% to 12% a week ago, but inflation estimate for the year was revised to 3.59% form 3.5% in the previous survey, according to Central bank.

Telecom companies in Brazil and Mexico advanced led by 2.2% rise in Vivo, 0.9% gain in Telmex, and 0.5% jump in American Movil.

Chinalco, largest aluminum company of China, has agreed to purchase Peru Copper for $800 million. The stock rose 3% in New York ADR trading and has jumped 60% for the year.

[R]1:00PM NY, 5:00 PM Frankfurt European markets gained ground on deal news and strong mining stocks.[/R]

European stock markets gained ground on Monday, recovering from the sharp losses posted last week. Positive market sentiment was generated by gains in the shares of mining firms as well as deal speculations, involving U.K. gas company Centrica. Miners were leading advancers, with Rio Tinto up 2.4% and Vedanta Resources posting gains of 2.5% as gold prices rebounded.

Centrica added 2.2% amid reports that Gazprom is not planning to bid for either Centrica or Scottish & Southern Energy. Also on the deal news front, German steelmaker ThyssenKrupp rose 2.3% amid speculation that the company might be in bid talks with either U.S. Steel Corp or Russia''s Severstal. The French Vallourec, a maker of steel tubes, climbed 3.7%, following news that Russian gas giant Gazprom may bid for company.

Banking group Barclays was also in focus. The bank’s shares increased 1.5% on reports that hedge-fund firm Atticus Capital LP acquired shares. On the side of the losers, Rexam slipped 3.3% after it agreed to buy the plastics-packaging business of Owens-Illinois for $1.83 billion. The German DAX Xetra 30 advanced 1.5 % at 7,706.10, the French CAC-40 index rose 1% at 5,940.09 and the U.K.''s FTSE 100 gained 1% at 6,567.50.