[R]Market averages in New York traded rose sharply as investors focused on health of global economy. European markets jumped led by financial stocks. Brazil rebounded.[/R]

Dow Jones Industrial Average increased 1.4% or 180.54 to 13,308.39, Nasdaq gained 38.36 to 2,597.47, and S&P 500 added 19.79 or 1.4% to 1,471.49.

FTSE 100 Index in London soared 146.60 or 2.39% to 6,280.70, in Tokyo Nikkei 225 closed at 15,877.67, up 0.71% or 112.7, and in Brazil, iBovespa Index traded up 2.41% or 1,268.00 to 53,920.57.

Yields edged lower on 10-year U.S. bonds and closed at 4.36% and 30-year bond rose to close at 4.63%.

Crude oil increased $0.74 to close at $78.23 per barrel record close for a front month contract, natural gas closed up 4 cents to $5.93 per mBtu, and gasoline futures added 0.25 cents to close at 198.11 cents per gallon. OPEC hiked the production quota by 500,000 but oil prices in New York trading

Gold gained $8.90 in New York trading to close at $721.10 per ounce, silver closed 13 cents higher to close at $12.84 per ounce, and copper for August month deliver in London lost $15 to $7,222.00 per pound in New York trading.

In New York trading averages closed higher after investors focused on health of global economy. Oil spiked another 1% and reached near record level and gold jumped above $720 level. In the afternoon trading investors surmised that strength in Europe, India, and China. Investors cheered August same-store sales increase of 8.1% at McDonald’s, General Motors rose 4% after expressing solid sales forecast in Russia, and Ericsson added 5% on the news that market is expanding in Asia and developed economies.

Gold jumped more than 1% as investors worried that fall in interest rate will hurt dollar. Euro and other Asian currencies have surged against dollar in the last three years of trading.

Countrywide Financials fell as much as 5% but closed down 2% after hiring Goldman Sachs to raise billions dollars. The largest home lender recently got multi-billion dollar investment from Bank of America.

U.S. trade deficit in July fell 0.2 billion to $59.2 billion from June deficit and $8.3 billion lower in July of 2006. UK reported that its traded deficit in July jumped to 4.4 billion pounds from 3.9 billion in June.

Of the 30 stocks in Dow Jones Industrial Average listed, 1 closed lower and 29 closed higher. Twenty stocks in the index gained 1% or more. General Motors with a gain of 4.6% to $30.54 led the stocks in the index. McDonalds and Home Depot added 3.2%. AT&T increased 2.7%, Exxon Mobil advanced 2.5%, and Boeing edged 2.2%.

Of the stocks in S&P 500, 57 stocks closed lower and 442 gained, 1 stocks closed unchanged. Ten stocks in index lost more than 4%. LSI Corp led the stocks in the index with a rise of 7% followed by gains in Sun Micro of 6%, 5.5% in Amgen, 4.8% in National Oil, and 4.5% in Coach. King Pharmaceuticals led the declining stocks with a loss of 7% followed by losses of 2.2% in Masco and Forest Labs. Countrywide Financials declined 1.9% and New York Times lost 1.8% to $20.33. Ensco, Gannett, and W.W. Grainger lost 1.6%.

In European Markets trading indexes closed higher reverses losses of yesterday. Indexes in France, Germany, Italy, and Spain jumped more than 1%. UK led the region with a gain of 2.4% followed by rises of 1.8% in Spain, 1.7% in France and the Netherlands, 1.2% in Italy, Norway, and Switzerland. Financials, pharmaceuticals, and retailers advanced in the region.

In Latin Markets trading Brazil led the gainers with a rise of 2.40% followed by increases of 1.0% in Mexico and fractional gains in Argentina and Chile. Of the 63 stocks in iBovespa 54 gained, 8 lost, and 1 closed unchanged. Cosan led the index stocks in Brazil with a gain of 12% followed by 6% rises in Duratex, Gafisa, and Cyrela.

Mexican bomb blast has hurt the natural gas supply affecting production at hundreds of companies. The Mexican energy supplier Pemex chief executive said on a local television interview that the daily of loss revenue from the blast is $3 million. Veracruz, the energy center of Mexico, was the target of oil and gas pipeline. The attacker blew up three oil and gas pipeline with the help of six explosions. The latest attack followed two attacks in July and managed to stop the flow of gas to several companies including Vitro, the largest gas company in Mexico. No one has claimed responsibility for the attack. Mexican president is on a six-day visit to India to widen trade cooperation.


[R]3:00PM New York, 7:00PM London - Strong gains in financial and metal stocks helped UK recover from Monday losses on higher Asian shares. UK trade deficit in goods and services climb to 4.4 billion pounds in July. Retailers French Connection and Next warned of difficult times ahead.[/R]

London stocks climbed higher following firmer Asian shares led by strong financial and mining shares. FTSE 100 surged 2.4% paring a fractional 0.9% loss yesterday. Of the 102 stocks in the index, 100 shares rose while only 2 dropped. Of the index shares, 46 stocks gained above 2 % by below 4.5% while the few losses were restricted to a maximum 0.6%.

Trading in London FTSE 100 advanced 2.39% or 146.6 at 6,280.70 on stronger investor confidence in bank and metal stocks. Property shares advanced too.

The Office of National Statistics reported UK deficit on trade in goods and services rose to 4.4 billion pounds in July from a revised deficit of 3.9 billion pounds the previous month. The deficit on goods alone advanced to 7.1 billion pounds against 6.5 billion pounds in June. The Office said the surplus on trade in services remained unchanged at 2.6 billion pounds. During the review period, exports rose 500 million pounds against imports at 1 billion pounds. Exports in intermediate goods, capital goods, chemicals, and oil gained while chemical and vehicle imports rose. The Office said the trade shortfall with non-EU countries widened to 4.5 billion pounds compared with the deficit of 3.4 billion pounds in June. Excluding oil and erratic items, the volumes of both exports and imports were four per cent higher in July than in June.

Of the FTSE 100 stocks, Barclays plc led the financial sector comeback rising 4.74% followed by supermarket chain Tesco plc up 4.4%. Schroders plc gained 4.29% while mining group BHP Billiton plc surged 4.25%. Northern Rock gained 4.02%.