[R]4:00PM NY – 10:00PM Frankfurt – 2:30AM Mumbai[/R]

Yield on 10-year U.S. bond closed at 4.593% and the 30-year bond closed at 4.718%.

Gold gained $8 to close at $625.90 a troy ounce, silver increased 25.5 cents to end at $12.780 a troy ounce and copper declined 0.75 cents to close at 302.200 cents per pound.

Oil advanced 94 cents to close at $63.150 a barrel and heating oil lost 0.70 cents to finish at 171.370 cents a gallon. Gasoline was up 3.83 cents to end at 70.05 cents a gallon. Natural gas gained 1 cent to close at $7.085 per mBtu.

Asian markets closed lower led by Thailand with a decline of 14.84%, India with a decrease of 2.54% and Hong Kong with a loss of 1.19%. There were no advancers. Asian stocks ended lower on weakness in the financial sector. Thai Central Bank imposed restrictions on foreign investing and a day later lifted ban. The Bank plans to control and restrict ‘currency speculating’ only.

European markets closed lower led by Spain with a decline of 0.98%, France with a decrease of 0.82% and U.K. with a loss of 0.70%. There were no advancers. European stocks were down on weaker tech companies and resource stocks.

Latin America markets closed mostly higher led by Canada with an advance of 0.28%, Brazil with an increase of 0.19% and Argentina with a gain of 0.12%. The only decliner was Mexico with a loss of 0.93%.

[R]1:00PM European markets closed down, dragged by tech and mining stocks.[/R]
European stocks closed in the red Tuesday, dragged down by weaker tech companies and resource stocks. German software group SAP declined 1% after peer Oracle posted lower-than-expected sales of new software licenses. Miner companies like Rio Tinto and BHP Billiton posted losses. Deal news from Vodafone Group and some European stock exchanges were also in the spotlight. Shareholders of Euronext exchange approved the pan-European stock exchange's tie-up with NYSE Group. Euronext shares rose 0.7% in Paris. Shares in the LSE dipped 0.5% after it again rejected a takeover bid from the Nasdaq Stock Market. Among other movers of the day, recruitment firm Hays dipped 2.8% in London after Credit Suisse cut its rating on the company to underperform from neutral. Also shares in German steelmaker Salzgitter dropped 3.8% after the bank cut its rating on the company. Drug maker Astra Zeneca lost 4.4% in London on fears that the European Patent Office ruled that one of the European substance patents for its heartburn treatment Nexium will be rejected by the office. The German DAX 30 and London FTSE 100 dropped 0.7% each, while the French CAC 40 slipped 0.8%.

Crude oil prices gained slightly Tuesday. Crude oil January contract added 19 cents to $61.84 a barrel. Heating oil fell to $1.7175 a gallon, while gasoline fell to $1.6582. Natural gas futures rose to $7.106 per 1,000 cubic feet. The U.S. dollar lost recent gains against its major currency rivals. The euro was quoted at $1.3179, up from $1.3098. The dollar bought 117.94 yen, down from 118.19. The British pound was quoted at $1.9651, up from $1.9490. European gold prices recovered. In London, gold traded at $620.20 per troy ounce, up from $613.17. In Zurich, the precious metal traded at $619.95 per ounce, up from $610.45. Silver closed at $12.61, up from $12.56.


[R]11:30AM Market declined on economic worries. Delta Air Lines rejected U.S. Airways’ hostile bid.[/R]
Stocks traded in the negative, as economic data and disappointing earnings news raised concerns about the strength of the domestic economy. Inflation at the wholesale level showed its biggest jump in more than 30 years in November, pushed higher by gas prices. Overseas news also weighed on sentiment, as the stock market in Thailand plunged 15% after the Thai government announced controls on foreign investment.

On the earnings news front, Morgan Stanley (MS: chart) rose 2.3% after it posted a stronger-than-expected Q4 profit despite earnings decline from the previous year. The company also announced plans to spin off its Discover credit card business. On the side of the decliners, Circuit City Stores (CC: chart) dropped 18% after it posted an unexpected loss in Q3 profit due to sharp discounts on flat-panel televisions and computer equipment. The company lowered its full-year sales forecast. Applied Signal Technology (APSG: chart) slipped 16.7% after the digital security company reported Q4 earnings below expectation. GenVec (GNVC: chart), a gene-based drug developer, climbed 33.3% after a mid-stage clinical trial showed a pancreatic cancer treatment candidate, TNFerade, helped improve the survival rate of patients

In corporate news, Delta Air Lines ((DALRQ.PK)) filed a reorganization five-year business plan that calls for it to emerge from Chapter 11 bankruptcy protection as a standalone company. According to advisers, a reorganized Delta will have a consolidated equity value of roughly $9.4 billion to $12 billion. The plan is expected to result in a recovery by Delta's unsecured creditors of roughly 63% to 80% of their allowed claims. It also rejected US Airways' $8.3 billion hostile takeover bid to create the nation's largest airline. US Airways shares fell 1.9% in morning trading.

By sector, a turnaround by the price of oil contributed to some strength in the energy sector. Meanwhile, weakness among technology stocks helped to offset the strength in the energy sector. In late morning trading, the Dow Jones industrial average was down 16.50, or 0.13%, at 12,424.77. The Standard & Poor's 500 index was down 2.28, or 0.16%, at 1,420.20, and the Nasdaq composite index was down 14.70, or 0.60%, at 2,420.87. Bonds were little changed, with the yield on the benchmark 10-year Treasury note flat at 4.59% from late Monday.


[R]10:30AM The Sensex broke its winning streak on an intense selling pressure.[/R]
The Sensex on BSE finished 349.08 points, or 2.54% at 13,382.01. The market breadth was negative on BSE, with almost two decliners for every gainer. On BSE, 1,641 shares declined while 919 advanced and 69 remained unchanged. From the Sensex 30 stocks, only Hero Honda advanced, rest declined. The turnover on BSE was Rs 4,114 crore, higher than Rs 3,772 crore on Monday. The turnover on NSE was Rs 9,066.2 crore, compares to Rs 8,222.2 crore on Monday.

Economic news

Thai stocks slumped almost 15% Tuesday as panic seized the market after the Central Bank of the country imposed a 10% penalty on overseas investors if they take out funds within a year of investment, pulling markets down throughout the region including India.

India must take preventive measures to curb inflation as it is still not clear that inflation worries are over, Finance Minister Chidambaram stated on Tuesday.

George Soros, a global financial speculator, today cautioned India not to go for full float of rupee and added that the government should not let the economy get overheated. Mr. Soros is widely blamed for his attacks on weak currencies in Asia for personal gains during the Asian contagion in the year 1998.