[R]4:15PM NY; 10:15PM Frankfurt; 2:00AM Mumbai - GLOBAL MARKETS[/R]

After weeks of rising market in New York, broader averages declined the most in a single day. Worst April retail sales in six-years, widening trade deficit and rising import prices shook investors. S&P 500 and Dow Jones declined 1.2% and Nasdaq fell 1.6%. Bank of England raised interest rates to 5.5%, fourth hike since August of last year but ECB kept the rates same at 3.75% but signaled that next month rates are likely to rise.

Chinese markets registered highest trading volume close to $50 billion, higher trading than all of Asian markets combined including, Japan, India and Singapore. Lower than inflation rates available on bank deposits and higher property taxes have forced investors in droves to stock market speculation. Individual investors in China opened more than 300,000 daily new accounts in April and May.

Brazil raised its sugarcane harvesting target to 513 million tons from 491 million forecasted in April. Farmers are expected to plant 6.7 million hectares for this year. Brazil debt rating was revised to BB+ by Fitch Ratings, one level below investment grade. Rising trade surplus and foreign reserves played a key role in the revision.


Yield on 10-year bond closed at 4.647% and the 30-year bond closed at 4.828%.

Gold lost $15.500 to close at $667.000 a troy ounce, silver decreased 33 cents to end at $13.140 a troy ounce and copper declined $108.000 to close at $8102.000 per metric ton.

Oil gained 26 cents to close at $61.810 a barrel and heating oil advanced 4.670 cents to finish at 186.250 cents a gallon. Natural gas increased 0.6 cents to close at $7.726 per MMBtu. Gasoline went up 8.910 cents to end at 232.000 cents a gallon.

Asian markets closed higher. The advancers were led by China with an increase of 0.64%, Taiwan with an advance of 0.55% and Singapore with a gain of 0.48%. The decliners were led by Hong Kong with a decline of 0.47%, Philippines with a decrease of 0.38% and India with a loss of 0.07%. Australia gained 0.22% led higher by gains in banking shares.

European markets finished lower pressured by mining stocks. The decliners were led by Italy with a decrease of 0.96%, Netherlands with a decline of 0.95% and Belgium with a loss of 0.87%. There were no advancers.

Latin America markets finished lower following markets overseas. The decliners were led by Argentina with a decline of 2.39%, Brazil with a decrease of 1.76% and Mexico with a loss of 0.84%. There were no advancers. Canada lost 0.34% as the heavily weighted financial services, materials and energy groups were all down.

[R]2:30PM NY, U.S. Market Movers[/R]

Aeropostale Inc. (ARO: chart) shares climbed 6.6% although its sales at stores open at least one year fell 14%. Net sales for the four-week period ended May 5 dropped 9.8% to $75.4 million. But the company lifted its earnings outlook for its fiscal first-quarter to 24-25 cents per share, up from a previous view of 22 to 23 cents per share.

Entegris (ENTG: chart) said it plans to initiate a tender offer to buy back up to 20.4 million shares of common stock. The company said it will pay up to $250 million to buy the stock, at a price in the range of $11 to $12.25. Shares jumped 10.8%.

Hillenbrand Industries (HB: chart), provider of health-care systems and funeral-service products, said that its fiscal second-quarter was about flat with the year-earlier period on 4.2% higher revenue. For the quarter the company posted earnings of $54.9 million, or 89 cents per share, against $54.5 million, or 89 cents per share, in the year-earlier period. Revenue increased to $516.2 million versus $495.6 million a year ago. Hillenbrand lifted its estimate of full-year net to $2.90 to $3.20 per share from the range of $2.85 of $3.15 it estimated at the end of the fiscal first quarter. It pegged fiscal 2007 revenue at $2.03 billion to $2.1 billion. Shares climbed 9.6%.

Home Solutions of America Inc. (HSOA: chart) shares jumped 8.8% after the restoration and remodeling company said its first-quarter profit soared above its outlook as revenue more than doubled thanks to an acquisition. The company posted an 83% increase in its quarterly profit to $5.7 million, or 12 cents per share, on sales of $39.9 million. For the second quarter, Home Solutions expects earnings of 14 cents to 17 cents per share on revenue of $44 million to $48 million.

Magna International (MGA: chart), automotive supplier, said that its quarterly profit increased to $218 million, or $1.96 per share, compared with $212 million, or $1.91 per share, a year earlier. Revenue jumped to $6.4 billion versus $6 billion last year. Magna expects sales in a range of $23.5 billion to $24.8 billion for the full year. Shares jumped 6%.

Technical Olympic USA Inc. (TOA: chart), home builder, recorded a first-quarter loss of $66 million, or $1.11 per share, compared with net income of $55 million, or 89 cents per share in the year-earlier period. The company said the results included a $78.9 million estimated pre-tax contingency loss related to the potential restructuring of a joint venture, as well as $42 million in charges resulting from inventory and land impairments. Revenue fell 4% to $588.2 million primarily on lower land sales. Shares climbed 6.2%.

Torch Energy Royalty Trust (TRU: chart) shares surged 25.4% after Trust Venture Co. announced that it has launched a tender offer for all the outstanding units of Torch Energy at a price of $8 each.

Brooks Automation Inc. (BRKS: chart) shares fell 5% after the company reported its fiscal second-quarter earnings of $1.43 per share, up from 6 cents per share in the year-earlier period. Excluding special items, the company earned 30 cents. Revenue climbed 31% to $194.9 million.