10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – Nervous investors sold Credit Suisse after it forecasted a probable loss in the current quarter. German state controlled bank received fourth capital infusion to cover sub-prime losses.

Global Markets Update

European markets were on the decline with gold, silver, oil, and agricultural commodities traded lower. Credit Suisse loss forecast unnerved investors.

Credit Suisse forecasted a loss in the current quarter and blamed intentional errors by fired traders in bond prices rattled financial markets in Europe. Credit Suisse now suffers from credibility deficit as investors drove the stock down 6% and worried that the management may not have a handle on the current situation.

German state controlled bank KfW agreed to IKB lend €450 million to cover leveraged and mortgage loans write downs. IKB is expected to post wider than estimated loss in 2008 of €800 million from its previous estimate of €550 million. IKB dropped 14% in Frankfurt trading.

IT services company TietoEnator soared 40% after it received an offer valued at €15.50 per share or 1.1 billion. Spanish property company Colonia plunged 23% after Dubai controlled fund is still negotiating to arrange financing. Alitalia closed up 9% after it surged as much as 30% on the hopes of a rival bid from Air France-KLM.

Gemalto NV, smart card maker dropped 2% after it reported 4% decline in 2007 sales to €1.63 billion and net income of €89 million compared to €1.6 million a year ago.

U.S. stocks rallied on positive analyst comments covering Fannie Mae and Freddie Mac. KBW analyst suggested that the recent Fed actions and wider latitude in mortgage lending will help the two largest mortgage lenders. Financials, home builders, and brokerage stocks rallied. Dow, Nasdaq and S&P 500 rose above 2%. Credit Suisse surprised estimate in the current quarter loss kept European banks and markets in check. General Motors closed near record low.

U.S. stocks edged higher in the morning on continued weakness in crude oil and metals prices. Crude oil, gold, and natural gas fell more than 3% in the morning trading. Fannie Mae soared 11% and Freddie Mac surged 9% after analyst comments suggested wider latitude in lending will increase mortgage lending and support mortgage markets. The comments and a rating upgrade lifted financial stocks.

Silver and wheat plunged 8.5%. Futures of Cocoa plummeted 9.3%, soybeans lost 4%, zinc and lead decreased 4%.

Wal-Mart reached a 3-year high but General Motors traded near record lows. Visa (V: chart) on the second day as a public company and MasterCard (MA: chart) surged as retail investors snapped up stocks in two largest credit card processing companies.

FedEx reported lower earnings and guided current quarter earnings to decline. Borders Group fell 28% after reporting earnings decline and financing from activist investor Pershing Square. Visa stock rose 6% on the second day of trading.

Borders Group reached a new low after the company essentially put itself up for a sale. The news rattled investors and stock plunged.

UK retail sales in three months ending in February rose 1% from previous three months and jumped 4.7% from a year ago. The rise in sales was recorded in food stores, non-store retailing and repair services. February current budget surplus rose to £2 billion compared to £700 million in the month a year ago. Net UK debt increased to £516.4 billion.

Asian markets fell in the region on weak metals and crude oil prices. Gold fell 3%, crude oil declined 2% and copper dropped 4% in the regional trading. The sharp drop in metal prices dragged mining companies in Australia, China, and Hong Kong trading. Japan, Markets in India, Indonesia, Malaysia, Pakistan, and Philippines were closed. China Mobile and PetroChina fell after the release of earnings. BHP and Rio Tinto plunged 7%.

European Markets

In London FTSE 100 Index closed lower 50.40 or 0.91% to 5,495.20, in Paris CAC 40 Index decreased 22.23 or 0.49% to close at 4,533.72 and in Frankfurt DAX index lower 41.23 or 0.65% to close at 6,319.99. In Zurich trading SMI decreased 63.13 or 0.89% to close at 7,009.86.

North American Markets indexes

Dow Jones Industrial Average added 261.66 or 2.16% to a close of 12,361.32, S&P 500 closed up 31.09 or 2.39% to 1,329.5, and Nasdaq Composite Index increased 48.15 or 2.18% to a close at 2,258.11. In Toronto TSX Composite closed up 66.26 or 0.52% to 12,775.64.

Of the 30 stocks in Dow Jones Industrial Average, 25 closed higher, 5 closed lower, and none were unchanged.