[R]5:00PM NY, 11:00 PM Frankfurt, 2:30AM Mumbai – Global Markets[/R]

Yields edged higher on 10-year U.S. bonds and closed at 5.22% and 30-year bond rose to close at 5.29%.

Crude oil gained $1.35 cents to close at $67.65 per barrel, natural gas up 20 cents to close at $7.808 per mBtu, and gasoline futures rose 7.27 cents to close at 222.80 cents per gallon.

Gold gained $3.20 to close at $655.90 per ounce, silver gained 11 cents to close at $13.16 per ounce, and copper futures increased $123 to close at $7,382 per metric ton.


In New York stocks rallied led by a rise in energy, mining and metals, and telecom stocks. Brokerage stocks were active too. Producer price for the month of May gained 0.9%, higher than expected, but core index excluding food and energy rose 0.2%. The market paid attention to core index rise and rallied. Chicago Mercantile Exchange said that it will raise its offer for CBOT, lifting the stock by $3 to $204.80 and stocks of Nymex and Intercontinental Exchange by 5%.

Gold and copper prices jumped lifting stocks in the sector. Freeport- McMoran (FMX: chart) jumped 2% and Barrick Gold (ABX: chart) and Newmont Mining (NEM: chart) edged up a fraction. Bear Stearns (BSC: chart) traded lower but closed a fraction up on the news that recent loss of 20% in one of hedge funds managed by the broker was not a concern to the company’s Chief Financial Officer. The company reported earnings drop of 33%. Goldman Sachs (GS: chart) traded 4% lower after reporting slowest earnings growth in a year and earnings drop of 1%.


Latin American Markets closed higher led by a 1.4% rise in Brazil followed by 1.2% gain in Chile and Argentina and 0.7% increase in Mexico. Markets in the region surged in sympathy with a rise in New York trading reflecting core producer price index data meeting expectation. Brazil gained as central bank minutes showed that future rate cuts are likely and noted that cheaper imports and higher investment by companies are helping to contain inflation.

In Sao Paulo trading stocks rose a day after the release of strong first quarter GDP data. In the last four years inflation has been tamed to 3.2% from 17% and currency has appreciated 82% against dollar. Steel, telecom, mining and retail stocks rallied. CSN, Usinimas and CVRD closed up 2%. Petrobras gained 2.3% and Gerdau jumped 4% on a recommendation from UBS.

In Mexico City trading stocks closed higher on a decline in bond rates and higher peso, but gains were limited in the afternoon trading. The rally in the morning was led by retailers, telecom and home builders. Telmex and American Movil jumped 1.4%, Homex gained 1.3%, Comercial Mexicana and Wal-Mart de Mexico advanced more than 1%.


European Markets closed higher as earnings growth optimism outweighed the worries related to rising rates in the region. Markets across the region closed up sharply with a gain of 2.2% in Germany and 2.5% rise in Norway. France gained 1.9% followed by 1.7% rise in Spain, Switzerland, Italy and the Netherlands. U.K. advanced 1.4%.

In Paris and Frankfurt trading industrial and banking stocks closed higher. Michelin, largest tire maker in the world, surged 5% and Siemens closed at 10-year high with a gain of 4.6%. BNP Paribas gained 2.4% and Deutsche Bank increased 1.9%. Sanofi-Aventis plunged 6.3% to 63 euros on the news that the U.S. FDA panel rejected company’s drug Zimulti for weight loss. Total S.A., energy giant, traded 3.6% higher. Fraport AG, Frankfurt airport operator and owner, jumped 5% on the news that May traffic edged 0.6% higher at the third-busiest airport.

In Zurich trading Credit Suisse rose 2% and Zurich Financial Services increased 1.8%.

In London trading banks, miners, utilities and energy companies participated in rally driven by a falling bond market yields and rising metals prices. Bradford & Bingley, mortgage lender gained on a broker upgrade, HSBC Holdings edged up 0.4%, and RBS increased 0.6%. Rio Tinto gained 3.4% and BHP Billiton added 2.4%. Royal Dutch Shell added 2.7% and BP increased 1.5%. Centrical Plc surged 4.5% on a rating recommendation from Citigroup to ‘Buy’ from ‘hold’.


Asian Markets closed higher in sympathy with higher closing in New York in the overnight trading led by a sharp rally in several markets. South Korea led the region with a rise of 2.75% followed by 2.4% gain in Philippines, 1.4% advance in Hong Kong and India, and 1.2% increase in Taiwan, Thailand and Australia. Shanghai declined 1.1% in response to a government statement sparking speculation that interest rates may be tightened sooner than expected.

In Seoul and Tokyo trading stocks of manufacturing and export companies in South Korea and Japan led the advance on falling dollar against the yen. Kospi Index closed at a record high. Brokerage firms, ship building companies and technology exporters participated in the rally in Korea. Woori Investment & Securities surged 7%, Samsung Heavy Industries galloped 6.5%, and Hyundai Heavy Industries jumped 6%. Discount chain Shinsegae Co. increased 4.5% and Lotte Shopping department store chain rose 2%. Posco, largest Korean steel maker and fourth largest in the world jumped 5% reflecting a rally across the region in steel stocks.

In Tokyo trading steel companies, high tech exporters and automobile makers led the rally. U.S. dollar is now trading at 50-month high against the yen helping favorable sentiment in trading for export companies. Nippon Steel said that it will spend $50 million to increase its stake in Godo Steel to 15% from 9.5%. Nippon Steel gained 1.2% and Godo Steel jumped 2.5% on the news. Nippon Mining Holding, largest copper smelter in Japan, surged 6%.

In Sydney trading, mining, energy, and infrastructure stocks participated in the rally. Rio Tinto advanced 4.2%, BHP Billiton gained 3.4%, and Macquarie Airports jumped 3.4% and Woodside Petroleum increased 4.3%. Macquarie is reported to have sold its stake in Rome airport for 1.2 billion euros.