[R]9:30AM New York – U.S. stocks rise at the opening. Bear Stearns and HSBC reported additional losses in risky loans.[/R]

U.S. market averages opened higher after a day of sharp rally. Dow Jones Industrial Average 40, Nasdaq increased 18 to 2,692, and S&P 500 added 9 to 1,490.

The Commerce Department reported that October retail sales increased 0.2% after revised increase of 0.7% in September and the Department of Labor said that the producer price index rose 0.1% in October from September. The core price index, which excludes the fuel and food prices, was unchanged from the month ago.

European markets traded higher on the rise in global markets. France led the gainers in the region with a rise of 1.4% followed by increases in UK of 1.2% and in Germany of 0.7%. HSBC rose 2.2% after surging 5% and ArcelorMittal increased 4%. UK insurer Friends Provident jumped 6% after its chief executive decide to leave the company following unsuccessful attempt to merge with another insurance company Resolution.

HSBC increased its loan loss provision to $3.4 billion, $1.4 billion more than previously estimated by the bank. In addition, HSBC Finance increased its loss reserve to $3.4 billion from $2.6 billion. HSBC also said that higher charges are likely in the coming months if the housing market deteriorates. HSBC estimated that 5.5% of total mortgages are at least two payment behind at the end of the third quarter compared to 4.3% of delinquent mortgages at the end of the second quarter.

Arcelor Mittal third quarter net income increased 36% to $2.96 billion from $2.18 billion a year ago on net revenue rise of 15% to $25.5 billion. The largest steel company proposed to increase its quarterly dividend to 37.5 cents from 32.5 cents beginning in March 2008. Earnings per share in the quarter increased 33% to $2.10 from $1.58 a year ago.

Asian markets surged after a rally in New York in the previous session. Markets in China, Hong Kong, and India led the gainers in the region. Of the thirteen markets in the region followed by 123jump.com, only Pakistan closed lower on local political worries.

Markets in China, Hong Kong, and India increased 4.9% followed by increases in Japan and Taiwan of 2.5%, in Philippines and Korea of 2.1%, in Indonesia of 1.4%, and in Australia of 1.2%.

Banks and mining stocks rallied in Japan. Mitsubishi UFJ Financial led the gainers in the financial sector and Toyota led the auto sector with a rise of 4%. Separately Mizuho Financial Group reported that it has booked a charge of $630 million to reflect weakness in its sub-prime loan portfolio. The loss in the portfolio lowered its earnings to 65 billion yen compared to 327 billion yen. Mizuho had earlier said that its exposure in the risky segment of mortgage securities was limited. As the sub-prime mortgage market deteriorated in the last four months, the bank is forced to take charge to reflect deterioration in its portfolio.

Sensex in India surged 6.4% in two days of trading and clocked record one-day gain today with a sharp rise in financial and metals and mining stocks.

Stocks in China closed higher led by a rise in energy, banks, and mobile telecom companies. Sinopec soared 10%, PetroChina added 7%, and China Unicom jumped 6%.


[R]5:30PM Mumbai, 7:00AM New York – Sensex in Mumbai surged to its best one-day rally ever.[/R]

Sensex in Mumbai trading surged to largest one-day gain reflecting the strength in New York and Asian markets. Index of 30 stocks surged 893.58 or 4.82% to close at 19,929.06. Sensex during the session at its peak rose 952 points. CNX Nifty soared 243.35 or 4.27% to close at 5,938.75.

Sensex in a two day surge has added 1,191 or 6.4%.

Of the stocks traded on the Bombay Stock Exchange, 2,019 gained, 748 declined, and 67 were unchanged. Trading volume on BSE surged to 8,796 crore rupees compared to 7,964 crore rupees. On the NSE the trading volume increased to 20,726 crore rupees from 19,646 crore rupees.

Banks, IT, and infrastructure stocks rallied.

Reliance Industries surged 7% to 2,885 rupees.

ICICI Bank soared 11% to 1,300 rupees, HDFC Bank jumped 11% to 1,747, HDFC advanced 6% to 2,742, State Bank of India added 2.2% to 2,346 rupees, and Punjab National Bank advanced 7.6% to 989 rupees.

Hindalco has increased delivery price aluminum by 2,000 rupees per ton. Hindalco Industries increased 7.0% to 217 rupees, Sterlite Industries edged 3.6% to 1,012 rupees, and Steel Authority of India increased 5.6% to 263 rupees.