Gold decreased $5.80 in New York trading to close at $907.70 per ounce, silver closed down 12 cents to $16.7 per ounce, and copper for front month delivery increased 3.350 cents to 330.65 per pound and in London copper futures decreased $110.50 to $7,243.00.

Dollar edged lower and traded near record against euro to $1.4833 and edged higher against yen to 106.66.


[R]1:30PM New York, 6:30PM London – Job loss data in the U.S. hurt market sentiment. Royal Bank of Scotland gained on talks of a stake sale to China.[/R]

Market Sentiment

Stocks in England reversed earlier gains on a U.S report that the economy lost 17,000 jobs in January, sparking fears that growth is slowing.

In London trading FTSE 100 stocks declined 0.05% or 3.0 to 6,026.20.

Of the 102 FTSE 100 stocks 54 gained. 43 declined, and five were unchanged. Royal Bank of Scotland led advancers with a rise of 4.31% after on speculation that the bank could sell its minority stake to the Bank of China.

Other financial institutions rose as well. Barclays Plc gained 1.96% and Alliance & Leicester jumped 1.56%.

Of the 102 FTSE stocks Royal Bank of Scotland led advancers with a rise of 4.31% followed by rises of 4.27% in Taylor Wimpey, of 3.46% in Friends Provident Plc, of 3.19% in Next Plc, and 3.01% in Vedanta Resources.

Royal Bank of Scotland rose on weekend reports that the company could sell part of assets and a minority stake to the Bank of China if the credit market turbulence increased.

Similarly, Friends Provident gained on renewed speculation of a takeover bid from private equity investors JC Flowers.

Carphone Warehouse led decliners of the 102 FTSE 100 stocks with a drop of 7.29% followed by losses of 3.52% in Man Group Plc, of 2.70% in Xstrata, of 2.52% in Smith & Nephew, and of 2.40% in Sainsbury.

Northern Rock Update

Reuters news reported today that Olivant opted out of the race for troubled lender Northern Rock, leaving Virgin Group as the possible contenders to clinch the bid for the financial institution.

Virgin Group reportedly announced its plans for Northern Rock after the market closed.

The Bank of England will begin a two-day meeting on Thursday and analysts forecast the apex bank will cut the cut the benchmark interest rate to 5.25% to ease pressures on the economy.

Carphone fell on concern that the company’s profit might show it lost ground on its mobile phone business.

Melrose Plc reported today in a statement on its Web site that it has made a takeover offer for FKI Plc for £412 million a 39% premium to last week’s closing price.

International Markets