1:00AM NY 5:00 PM Frankfurt European stocks turned down ahead of Fed Reserve meeting.
European stock markets finished in the red on Thursday, pressured by cautiousness on Wall Street ahead of a speech by Fed Reserve Chairman Bernanke. The downward trend was also contributed by IMF after it lowered its global growth forecasts. European metals stocks traded mixed, with mining giants Rio Tinto and BHP Billiton losing ground but Xstrata rising 0.8%. Xstrata said it agreed to sell aluminum assets to private-equity firm Apollo Management for $1.15 billion in cash. Oil companies helped to limit losses, as crude-oil prices kept above $61 a barrel. Shares of BP added 0.9%, Total gained 0.7%, Repsol shares rose 1.1% in Spain and OMV climbed 1.4% in Austria. U.K. property companies were also under pressure after Lehman Brothers downgraded British Land, Land Securities, Hammerson , Slough Estates and Brixton. In other broker news, shares of France''s PPR fell 2.1% as J.P. Morgan downgraded the luxury-goods retailer, saying the company''s bid for German sportswear maker Pumaleaves valuations and debt stretched. Puma''s shares rose 1.8%. The U.K.''s FTSE 100 closed down 0.1% at 6,413.30, the German DAX Xetra 30 lost 0.2% at 7,152.83 and the French CAC-40 fell 0.3% to 5,751.92


11:30AM U.S. market averages further dropped on weak gasoline stockpiles.
U.S. stock market averages moved further to the downside after the U.S. government reported the ninth straight weekly drop in the nation''s gasoline, raising concerns about supplies ahead of the peak driving season. The energy report sent the Dow Jones nearly 80 points lower. The leading drags on the blue-chip average included General Motors Corp. (GM: chart), down 2.2%, IBM (IBM: chart), falling 1.3%, Caterpillar Inc. (CAT: chart), losing 1.1%, Citigroup Inc. (C: chart), down 1.8%, and Dupont (DD: chart), down 1%. Among biotech stocks, Amgen (AMGN: chart) lost 0.3%, while Vertex (VRTX: chart) and InterMune (ITMN: chart) moved notably lower, down 2.5% and 1.7% respectively. Some health insurance stocks also came under pressure. Health Net (HNT: chart) helped to lead the sector lower, falling 3% after Merrill Lynch downgraded its rating on the company''s stock to neutral from buy, citing valuation.

Housing, technology, and defense stock also posted weakness. Housing stocks declined on concerns about the outlook for the housing market. Hovnanian (HOV: chart) slipped 2.3%, Pulte Homes (PHM: chart) dropped 2.4%, and Meritage Homes (MTH: chart) lost 2.1%, standing out as some of the sector''s worst performances. At the same time, notable strength was visible in the gold sector, as the price of the precious metal extended recent advance. In late morning trading, the Dow fell 78.18, or 0.62%, to 12,495.67, after dropping by as many as 102 points. The Standard & Poor''s 500 index slipped 6.87, or 0.47%, to 1,441.52, and the Nasdaq composite index fell 14.57, or 0.59%, to 2,463.04. Bonds rose moderately as stocks moved lower. The yield on the benchmark 10-year Treasury note fell to 4.71% from 4.72% late Tuesday.


9:45AM U.S. markets opened lower ahead of FOMC minutes.
U.S. stock markets opened in the negative, as cautiousness ahead of a speech by Fed Reserve Chairman Bernanke and the release of the FOMC minutes offset the positive sentiment, generated by upbeat earnings from Alcoa and job cuts at Citigroup. Alcoa (AA: chart) shares rose 1.4% after it posted a 9% rise in Q1 profits and an upbeat outlook for the year. Aluminum Corp. of China (ACH: chart) climbed 5.9% in early trading. Citigroup (C: chart) lost 1% after it announced plans to reduce 17,000 jobs worldwide. Among notable movers, Biolase Tecnology, (BLTI: chart), dental and cosmetic laser maker, warned it will post a Q1 loss and lower-than-expected revenue. Company''s shares tumbled 24%. American Medical (AMMD: chart) dropped 13.3% after the company said it will miss its Q1 revenue forecast due to supply chain problems.

Retail companies attracted some attention, as some of them reported sales figures on Wednesay morning. Target (TGT: chart) posted 12% increase in March same-store sales, in line with previous estimates. The retailer added April same-store sales are expected to drop 2% to 4%. The stock lost 0.7%. Chico''s FAS Inc. (CHS: chart) rose 4.6% after it said that comparable sales rose 5.2% in March compared with the year-ago period. Total sales for the five-week period ended April 7 increased 22%. Most retailers are due to release their March sales data on Thursday morning. Retailers are generally expecting strong growth in same-store sales, helped by earlier Easter and warmer-than-normal weather in parts of March. Wal-Mart Stores (WMT: chart) projected that same-store sales for the period would be up 1% to 2%. In the first hour of trading, the Dow Jones industrials fell 20.64, or 0.16%, to 12,553.21. The Standard & Poor''s 500 index slipped 2.51, or 0.17%, to 1,445.88, and the Nasdaq composite index fell 6.35, or 0.26%, to 2,471.26. The yield on the benchmark 10-year Treasury note remained flat at 4.72% from late Tuesday.


9:30AM London equities traded higher on Wednesday on M&A talks
The UK market was higher on Wednesday. By mid-day, the FTSE 100 was 0.2 5 higher at 6,432.6, an advance of 15 points.

Advancers

Retailers were at the centre of activity on fresh speculation that Marks & Spencer could be the next target of a bid from private equity. Shares in the company were 3.1% stronger. The plans of Xstrata to sell its aluminium operations for $1.2 billion sent shares in the miner 2.3% higher. Royal Dutch Shell added 0.7% after it announced it would settle legal claims from investors outside the US about its oil reserves restatement controversy in 2004.

Decliners

On the downside, five large-cap constituents traded ex-dividend, taking around 3 points off the senior index. Friends Provident lost 3% and Prudential fell 1.3%. Hammerson was 2.4% weaker, Kazakhmys was 3.7% softer and BG Group was 0.2% lower. Water utility Kelda fell 1.5% after HSBC reduced the bank price target on the stock.


9:15AM Asian markets advanced on Wednesday with Japan leading the markets higher.
Asian markets finished higher on Wednesday. The benchmark Nikkei 225 index rose 5.38 points, or 0.03%, to finish at 17,670.07. Advancers included Canon, gaining 1.07% and Eisai, rising 0.51%. TDK also rose 1.8% on a report Wednesday that the electronic-parts maker is likely to have released a record group net profit for the year ended March.

The Hang Seng Index also gained 101.56 points, or 0.5%, to 20,449.43. Large-cap HSBC added 0.4% as fears of U.S. subprime exposure were allayed. China Mobile advanced 0.4% after JP Morgan recommended in a research note that investors should buy China Mobile on strong fundamentals and take profits on China Unicom. China Unicom fell 0.7%.

South Korean shares advanced to a record high led by LG.Philips LCD. The Korea Composite Stock Price Index added 14.26 points, or 1%, to 1,513.42. LG.Philips LCD surged 8.2% on hopes for better earnings in the second quarter. Other technology stocks also advanced including Samsung Electronics, the largest corporation of South Korea, which rose 3.6%.

In China, the Shanghai Composite Index, which tracks both Class A and Class B shares, closed up 1.5% at 3,495.22. The Shenzhen Composite Index gained 1.1% to 928.28, its eighth-consecutive record finish. Among large-caps, China Vanke gained 6.6% and China Merchants Bank jumped 6.3%.

Elsewhere in the region, Taiwan gained, boosted by a strong showing in electronic stocks. The Weighted Price Index of the Taiwan Stock Exchange gained 22.85, or 0.3%, to close at 8,071.24.


9:00AM Alcoa earnings lead market to higher opening.
Wall Street looked poised for higher opening on Wednesday before the release of last FOMC minutes. The pre-market sentiment was boosted by better-than-expected quarterly figures released by Alcoa and cost-reduction moves by Citigroup. Shares of Alcoa (AA: chart) rose 2.2% in pre-open trading after the Dow industrials component kicked off Q1 earnings season by exceeding earnings and revenue forecasts. The aluminum producer posted earnings of 79 cents a share on $7.9 revenue increase, topping expectations of earnings of 76 cents a share and revenue of $7.6 billion. Other companies due to report Q1 results today include Bed Bath & Beyond (BBBY: chart), biotech Genentech (DNA: chart) and BlackBerry maker Research In Motion (RIMM: chart).