[R]4:30PM New York, 10:30PM Frankfurt, 2:00 AM Mumbai[/R]

[R]Market averages in New York fell in the last thirty minutes of trading as investors worried about the health of the housing market. UK market was closed. European markets edged up a fraction. Asian markets rallied reflecting Friday closing in New York.[/R]

DAX Index in Germany fell 21.28 or 0.28% to 7,485.99, in Tokyo Nikkei 225 closed at 16,301.39, up 52.42, and in Brazil, iBovespa Index traded up 965.51 or 1.86% to 52,813.74.

Yields edged lower on 10-year U.S. bonds and closed at 4.605% and 30-year bond rose to close at 4.87%.The yield spread between the long and short narrowed as investors pile on to the treasuries.

Crude oil increased $0.95 to close at $72.04 per barrel, natural gas closed down 15 cents to $5.37 per mBtu, and gasoline futures increased 5.36 cents to close at 203.50 cents per gallon.

Gold declined $1.30 in New York trading to close at $676.20 per ounce, silver lost 17 cents to close at $11.92 per ounce, and copper futures gained $69.00 to close at $7,379.00 per metric ton.

In New York averages fell after a week of solid rise lifting global markets. Traders focused on existing home sales report. The July home sales declined 0.2% from June and 9% lower from a year ago. Unsold homes inventory in the market jumped 5.1% to 9.6 month supply from 9.1 months in June 2006.

Last week the Commerce Department reported that new home sales in July, a notoriously volatile economic indicator, jumped to 870,000, increase of 2.8% from June and 10.6% lower from a year ago and the median price for new home jumped 0.6% to 239,500 in the month. Seasonally adjusted inventory of new homes rose to 7.5 months supply.

Stocks of home builders and mortgage lenders were in sharp focus after the report. D R Horton, Toll Brothers, and Hovnanian, and Beazer Homes fell nearly 5%. Countrywide Financial fell nearly 5% after Lehman Bros cut its earnings to $1 per share from $2.80.

In the deal news Home Depot is in a deal to sell at 18% lower price of $8.5 billion its supply division to a group of private equity buyers. U.S. Steel agree to purchase Stelco at $1.1 billion.

Of the 30 stocks in Dow Jones Industrial Average 18 closed lower and 12 advanced. Of the 30 stocks in index, 10 stocks lost more than 1%. Honeywell international led the gainers in the index with a rise of 2.65% followed by 1.8% in Altria and Home Depot. General Motors led the decliners with a loss of 2.1% followed by losses in 1.8% in J P Morgan, 1.2% in Citigroup, Procter & Gamble, and McDonalds.

Of the stocks in S&P 500, 377 stocks closed lower and 118 gained, 5 stock closed unchanged. Countrywide Financial led the decliners with a loss of 5.6% to $19.81 followed by declines of 5% in Dynegy, 4.6% in Centex, KB Home, and PPL Corporation. Unisys, Big lots, and MGIC Investments dropped 4.3%. Tiffany led the gainers in the index with a rise of 5% followed by 4% increase in Sun Microsystems, 3% advance in NVidia, Whole Foods, and Parker Hannifin.

Across Asia, most markets closed higher following Friday’s higher close in the U.S. India and Hong Kong led the region with a gain of 2.9% following rises of 1.6% in Australia, 1.5% in Indonesia, 0.7% in Korea. Philippines and Pakistan in the region declined with a loss of 0.7%.

Tiffany in Japan agreed to sell its property for $318 million to Goldman Sachs and lease it back, according to report in the Wall street Journal. Tiffany bought the property in 2003 at $140 million. Real estate and banks led the index in Japan higher and shipbuilders and steelmakers rallied in Korea. Banks, metals, and telecoms rallied in Shanghai. Mining, cement, banks, and real estate stocks rallied in India.

In Latin Markets trading Chile led the region with a gain of 0.47% followed by Brazil with a rise of 0.34%, Mexico with a gain of 0.24%. Argentina closed unchanged.


[R]1:00PM NY, 5:00 PM Frankfurt European markets closed mostly higher, boosted by ABB and Nordic.[/R]

European stock markets finished mostly higher Monday, continuing a six-session winning streak. Market gainers were led higher by engineering-services giant ABB as well as Nordic exchange operator OMX. France closed higher by 0.4%, while Germany finished down 0.3%. London''s market was closed for a bank holiday.

ABB climbed 0.9% after the Swiss-Swedish company agreed to sell its oil and gas division Lummus to Chicago Bridge & Iron Co for $950 million. Nordic stock exchange operator OMX rose 1.7% on reports the Nasdaq Stock Market is planning to raise its bid.

In Frankfurt stocks dropped, led by engineering company Siemens and semiconductor Infineon Technologies. The stocks dropped 1.6% and 1%, respectively. Banking shares moved to the downside amid subprime-mortgage concerns, with Allianz posting the biggest loss of 1.3%. Stock-exchange operator Deutsche Boerse fell 1.1% amid speculations that it may buy part of Nasdaq''s 31% stake in the LSE.

On the positive side, tire maker Continental rose 1.1% and Volkswagen added 0.7% amid reports Europe''s largest carmaker plans to assemble six models at its new Russian plant. Balda, maker of plastic casings for mobile phones, surged 20% after winning an order for touch-screen displays.