[R]1:00PM NY European markets posted gains, boosted by utility and mining stocks.[/R]
European stocks posted gains on Tuesday, helped by news that German utility giant E.On will abandon plans to buy Spain''s Endesa. The mining sector also provided support as copper prices advanced. Higher opening on Wall Street further drove sentiment higher. Shares in Germany''s E.On gained after it reached an agreement with rivals Acciona and Enel SpA to withdraw a bid for Spanish utility Endesa SA in exchange for a portfolio of the Spanish group''s European assets. Shares of Acciona rose 5.9%, Enel added 1.3% while Endesa eased 0.8%. Other utilities, including Suez and Scottish & Southern rose by more than 1.5%. In Spain, Gas Natural rose 3.4% and Union Fenosa increased 4%. In other deal moves, shares in German tire maker Continental rose 3.2% on bid speculation. Miners were among the notable advancers on firm copper prices, with Rio Tinto and BHP Billiton helping the resource sector to advance more than 2%. The German DAX 30 increased 1.6% to 7,045.56, the French CAC-40 index rose 1.2% at 5,711.91, and the U.K. FTSE 100 closed up 0.6% at 6,366.10.


[R]11:30AM Dow Jones gained over 120 points. Homebuilders advanced.[/R]
U.S. market averages posted solid gains in early trading, with the Dow Jones industrials adding more than 120 points. Leading gainers on the blue-chip average were shares of Altria Group Inc. (MO: chart), up 2.2%, Home Depot Inc. (HD: chart), up 2.5% and Wal-Mart Stores (WMT: chart), higher by 1.7%. Stocks benefited from falling oil prices, as well as signs of improving housing market. The National Association of Realtors'' index for pending sales of existing homes increased at a seasonally adjusted annual rate of 0.7% to 109.3 in February from a reading of 108.5 in January.

Homebuilders rose after the rise in pending home sales. Pulte Homes rose 3.2%, KB Home (KBH: chart) rose 3.1%, and Toll Brothers (TOL: chart) gained 3%. Alcatel-Lucent (ALU: chart) rose 2.2% after it agreed to acquire privately held Tropic Networks Inc. Financial terms of the deal were not disclosed. Technology stocks posted strength, helped by a positive outlook from Napster (NAPS: chart) which sent its stock 7% higher. Evergreen Solar (ESL: chart) climbed 7% on extension contract from SunEdison. F5 Networks (FFIV: chart) advanced 4.6%.

In the financial sector, subprime lender New Century Financial (NEWC: chart) rose 4.4%. On Monday it filed for bankruptcy protections as it cut 54% of its workforce. Accredited Home Lenders (LEND: chart) surged 22% after it said it received new financing from a commercial bank and confirmation of an existing loan from an investment bank. Among automakers releasing monthly sales, Porsche Cars North America Inc. said that U.S. sales rose 2.9% in March to 3,278 vehicles from 3,185 last year. Volvo Cars of North America LLC said sales fell 4.8% in March, to 12,002 units from 12,605 a year ago. Sales in the U.S. fell 4.4% to 10,666 vehicles. In late morning trading, the Dow rose 124.51, or 1.01%, to 12,506.81. The Standard & Poor''s 500 index was up 12.81, or 0.90%, at 1,437.36, and the Nasdaq composite index added 30.62, or 1.26%, to 2,452.88. Bonds were slightly lower after the home sales data, with the yield on the benchmark 10-year Treasury note at 4.66%, up from 4.65% late Monday.


[R]9:45AM U.S. stocks rallied on strong pending home sales.[/R]
U.S. stocks rallied at opening Tuesday, extending recent gains. Market sentiment was boosted by data showing higher-than-expected February pending homes sales, which suggested that the housing market was stabilizing. Shares of home builders moved to the upside, with Beazer Homes USA (BZH: chart), rising more than 2%. A notable decline in crude oil prices amid easing tensions between the UK and Iran also gave a boost. Consequently, shares of oil companies moved lower, with Exxon Mobil (XOM: chart) losing 0.5%. Among other Dow components, Altria Group (MO: chart) and United Technologies (UTX: chart) gained, each rising 1%.

Shares of larger Internet companies gained, led by Google Inc. (GOOG: chart), up 2.4% after announcing a TV ad-selling trial with the owners of the Dish Network. eBay Inc. (EBAY: chart) rose 2.6% after Bear Stearns slightly increased Q1 profit and sales estimates for the company. Shares of online music seller Napster (NAPS: chart) jumped 7% after announcing that its Q4 results will beat its own estimates.

In earnings news, Iridex Corp. (IRIX: chart), a provider of laser systems, dropped 16% after the company reported a Q4 net loss of 48 cents a share, compared with a net profit of 5 cents a share, in the year-ago period. Revenue fell to $9.04 million from $10.4 million last year. In the first hour of trading, the Dow Jones industrial average rose 66.07, or 0.53%, to 12,448.37. The Standard & Poor''s 500 index was up 6.47, or 0.45%, at 1,431.02, and the Nasdaq composite index rose 15.47, or 0.64%, to 2,437.73. Bonds were slightly lower ahead of the data, with the yield on the benchmark 10-year Treasury note at 4.65%, up from 4.64% late Monday.


[R]9:30AM London trades in the positive Tuesday afternoon with utilities and miners leading.[/R]
The UK market was higher in afternoon trade on Tuesday. The FTSE 100 was up 0.45% to 6,344 in afternoon trade.

Advancers

Scottish & Southern Energy gained 2%, while International Power was 2.1 % higher and Scottish Power rose 1%. Severn Trent rose 1.4% after underlining its growth targets, while Kelda Group rose 1.2% and mid-cap Northumbrian Water Group was up 2.5%.

Severn Trent announced that process improvements are expected to result in staffing levels in Severn Trent Water being reduced by around 600 posts over the next five years. Severn added it has delivered a trading performance last year consistent with its expectations.

Miners were going well, led by Kazakhmys and Xstrata on better copper prices. Kazakhmys gained 3% and Xstrata rose 2.7%.

Decliners

Strategic Thought, down almost 17%, said it has seen a recovery in the performance and closed more ARM deals than last year but was still slower than anticipated due to delays. Life group Resolution says embedded value per share rose by 18% to 613p in 2006, reflecting the benefit of the acquisition of Abbey life businesses and a strong performance across all its businesses.

Publisher Bloomsbury, down 1.31%, reported profits crashed to 5.2 million pounds in 2006 from 20.1 million pounds in 2005, as expected, on turnover of 74.8 million pounds versus 109.1 million pounds last time. The firm added it had made a good start to current year with a strong pipeline of titles.


[R]9:00AM Wall Street to extend gains, awaiting U.S. automakers sales.[/R]
U.S. stock futures indicated a higher opening, supported by a notable decline in crude oil prices as tensions between Britain and Iran subsided. Light sweet crude dropped 97 cents to $64.98 in premarket trading on the Nymex. On Tuesday, automotive stocks are expected to be in focus as the nation''s automakers are due to release March sales figures that could help market extend yesterday’s gains. Ford Motor Co. (F: chart), Chrysler (DCX: chart) and General Motors (GM: chart) are all likely to report lower sales compared to last-year figures, while Toyota Motor (TM: chart) Honda (HMC: chart)and Nissan (NSANY: chart) are expected to release higher U.S. sales. General Motors, the nation''s largest automaker, said its Q1 sales in China jumped 25%. As U.S. sales have been sluggish, overseas markets are seen as a key driver to sales. Results will be closely watched to determine the pace of consumer spending.