4:00PM New York, 10:00PM Frankfurt, 1:30 AM Mumbai

The Central banks in Europe, U.S., Japan, and Australia pumped liquidity in the market for the third day in a row. The largest infusion of $65 billion came from ECB and $2 billion from the Fed in Washington. UK led the European markets with a gain of 3% and several markets in the region closed above 2%. Asian markets staged a mild rebound. Argentina and Mexico edged a fraction up.

Dow Jones closed down 3.01 to 13,236.53, Nasdaq declined 2.66 to 2,542.23, and S&P 500 fell 0.72 to 1,452.92.

FTSE 100 Index in the U.K. closed up 180.70 or 3% to 6,219.00, in Tokyo Nikkei 225 closed at 16,800.05, up 0.27% or 35.96, and in Brazil, iBovespa closed down 0.4% to close at 52,434.01.

Yields edged lower on 10-year U.S. bonds and closed at 4.77% and 30-year bond rose to close at 5.00%.

Crude oil increased 15 cents to close at $71.62 per barrel, natural gas closed unchanged to $6.82 per mBtu, and gasoline futures decreased 1.5 cents to close at 193.98 cents per gallon.

Gold traded $0.70 lower to close at $680.90 per ounce, silver lost 1.7 cents to close at $12.86 per ounce, and copper futures declined $12.50 to close at $7,518.00 per metric ton.

In New York trading stocks opened higher on central bank intervention in Australia, Europe, Japan and the U.S. In the day’s trading averages steadily lost their momentum and in the last thirty minute of trading succumbed to sellers.

The Fed added $2 billion in the U.S financial system. The ECB added another $65 billion, in Japan central bank added $5 billion, and in Sydney the Reserve bank added $1.2 billion. While the bankers were forced to add lower amount of capital in the market, and normality appears to have returned to the market, traders and bankers remain nervous. The third day of coordinated action by the banks around world has managed to calm markets for now.

The European Central Bank continues to add largest liquidity in the markets, keeping the traders guessing the extent of the problem. The European Central Bank was forced to inject liquidity on Thursday and Friday. In the two days it has added nearly 130 billion euros in the market to curb the interest rate rising above its target rate of 4%. The rates had risen to 4.7% and after the injection interest rates fell to 4.1% but the credit markets remain jittery.

Home builders stocks fell after the third quarter homes delivery from Hovnanian Enterprises. The company reported that it sold 31% less from a year ago totaling 3,179 homes. The cancellation in the third quarter jumped to 35% from 33% a year ago and a backlog of contracts declined 31% to 7,126 homes. Beazer Homes plunged 11%, D R Horton fell 3%, Pulte Homes dropped 7%, Lennar declined 6%, and Toll Brothers declined 4%. Countrywide Financial fell nearly 3% for the second day after reporting that current financial market volatility may hurt the company performance. Washington Mutual fell 2% after losing 3% in previous session after saying that closing non-prime loans and securities have become difficult.

Of the 30 stocks in Dow Jones Industrial Average 11 closed lower and 19 advanced. Hewlett Packard led the index stocks with a gain of 3%, followed by a rise in Alcoa of 2.3%, 2.1% in General Motors and Boeing, and 1% in Verizon and AT&T. American Express led the decliners with a loss of 1.7% followed by 1.6% decline in Home Depot and Exxon Mobil, and 1.4% decrease in Procter & Gamble.

Of the stocks in S&P 500, 221 stocks closed lower and 276 gained, 3 stock closed unchanged. Home builders, mortgage lenders, and banks, and electric utilities stocks dominated the losers list.

Pulte Homes and Centex led the index stocks with a loss of 7.3%. Lennar and KB Home fell 6%. Ambac Financial, Moody’s, Countrywide, and Fifth Third Banc fell close to 4%. MGIC Investment Corp dropped another 3% after losing 13% in Friday’s trading. Valero, Progress Energy, Southern Company, and Duke Energy lost more than 4%. Computer Science soared 10% and led all the stocks in the index followed by a rise of 8% in Centurytel, 7% in EMC, 6% in Ralph Lauren, Discover Financial, Waste Management, and Sears Holdings.

Asian markets rebounded after a volatile day of trading. Shanghai led the region with a gain of 1.5% followed by 1.2% advance in Korea, 1.0% rise in India and Australia, 0.65% addition in Singapore, and 0.45% increase in Hong Kong.

In Latin Markets trading Argentina and Mexico led the region with a gain of 0.63% followed by 0.5% decline in Chile, and 0.4% decrease in Brazil.

In Sao Paolo trading iBovespa index lost 42.43 to close at 52,595.70 with 32 stocks in the index falling, 26 stocks gaining, and 2 stocks remained unchanged. Cyrela Commercial led the index stocks with a surge of 12% followed by 2.7% rise in Ambev, and 2% increase in Telemig, Braskem, Unibanco, Sabesp. TAM led the decliners with a loss of 5% followed by 4% decline in Natura, and 3% decrease in Brasil Tele, Gerdau, and Cosan.


1:00PM NY, 5:00 PM Frankfurt European markets closed steeply higher amid easing subprime worries.

European stock markets rebounded to close steeply higher Monday, boosted by solid gains in the shares of mining and financial stocks after recent declines. Markets also benefited from a positive comment from Morgan Stanley and easing subprime concerns, as central banks injected additional cash flows into the financial institutions. ECB added 47.5 billion euros to provide liquidity for the banking system. Across the region, The U.K. surged 3%, followed by France which advanced 2.2% and Germany, rising 1.8%.