4:00PM New York, 10:00PM Frankfurt, 1:30 AM Mumbai – New York rallied in the late afternoon, setting the stage for higher opening in Tokyo. European markets closed mixed on takeover news.

Dow Jones rallied 208.10 to 13,265.47, Nasdaq jumped 37.11 to 2,562.23, and S&P 500 increased 23.71 to 1,458.95%.

FTSE 100 Index in the U.K. closed down 9.10 to 6,206.10, in Tokyo Nikkei 225 closed at 17,289.30, down 5.49, and Brazil iBovespa gained 1,702.91 to close at 54,705.15.

Yields edged higher on 10-year U.S. bonds and closed at 4.82% and 30-year bond rose to close at 4.97%.

Crude oil declined 19 cents to close at $76.83 per barrel, natural gas closed 29 cents higher to $6.50 per mBtu, and gasoline futures decreased 1.6 cents to close at 208.56 cents per gallon.

Gold traded lower $4.77 to close at $677.00 per ounce, silver increased 23 cents to close at $12.95 per ounce, and copper futures lost $10 to close at $7,849 per metric ton.

Market averages remained volatile though generally trading higher till the afternoon. The late afternoon rally left most averages higher by 0.6%. Merger and takeover news dominated trading sentiment. Verizon agreed to purchase Rural Cellular for $2.7 billion. Korean company Doosan Infracore said that it has agreed to purchase construction vehicle business of Ingersoll-Rand for $4.9 billion. In Europe ABM Amro said that it will no longer recommend offer from Barclays to shareholders. ICI rejected the bid from Akzo and held out for higher offer, more than $16 billion.

CSI 300 Index in Shanghai increased 2.2% to record close at 4,440.76 leading all markets in the region. South Korea followed with a rise of 1.25%, Singapore with an increase 0.96%, and Hong Kong added 0.75%. However smaller markets fell led by 2.33% decline in Thailand and 1.5% in Philippines. Taiwan lost 0.9% after leading the recent declines in Asia last week.

Asian markets staged a broad recovery on earnings and gains in steel stocks in Japan and financial services companies in China. Steel companies in Japan reported strong improvement in earnings. JFE Holdings, Nippon Steel, Nippon metals earings soared on stable demand from construction and engineering industries.

Latin American Markets surged tracking a late rally in New York led by 3.3% rise in Brazil followed by 2.4% advance in Mexico, and 1.4% gain in Argentina and Chile.

Stocks in Sao Paolo recovered in the afternoon trading. Votorantim Celulose surged 6%. Petrobras gained 2% on stable oil prices in New York trading and sugar producer Cosan gained 2.5%. The company is preparing to launch its IPO in New York.

In Mexico City trading Coca Cola FEMSA surged 5% and FEMSA gained 4%. Femsa also reported earnings gain of 19%. American Movil after losing nearly 10% last week advanced for the second day in a row and closed up 3.6%.

1:00PM NY, 5:00 PM Frankfurt European markets finished mixed. Chemical stocks advanced.

European stock markets closed mixed Monday after a volatile session. Stocks were supported by gains in the chemicals sector and strong earnings which managed to offset continuous credit market concerns. Germany closed up 0.1% at 7,456.31, France ended unchanged and the U.K.''s fell 0.2% to 6,206.10.

In Frankfurt shares of IKB tumbled 20.1% after the lender acknowledged losses from its exposure to the U.S. subprime mortgage market. Among other movers, property investment firm Hypo Real Estate fell 3.8%, while Linde shares increased 5.4% on higher first-half profit.

In Paris Michelin climbed 3.8% after Societe Generale raised its share-price estimate on the tiremaker. Among other gainers, Schneider Electric added 1.8 %, while Rhodia rose 3.6% ahead of earnings report. On the side of the losers, Societe Generale dropped 1.8%, while Dexia, Belgium''s third-biggest financial-services company, fell 1.7%.

In London the financial-services sector was still under pressure with shares of hedge fund Man Group down 3%.HSBC Holding erased earlier gains to close up 1.4% after the bank reported a 25% increase in first-half profit. In the chemicals sector, ICI rose 7.2% after it rejected a second all-cash offer from Dutch chemicals group Akzo Nobel. ICI said that the offer worth 7.76 billion pounds ($15.8 billion), is still not high enough. Akzo Nobel shares lost 1%.


11:30AM U.S. stocks traded in a lackluster fashion.

U.S. stocks continued to trade in a lackluster fashion, as traders remained somewhat concerned about the outlook for the markets after the heavy sell-off last week. However, deal news and strong financial results at HSBC Holdings (HBC: chart) helped limit the downward trend.