5:00PM NY, 11:00 PM Frankfurt, 2:30AM Mumbai – Global Markets

Yields edged lower on 10-year U.S. bonds and closed at 5.17% and 30-year bond rose to close at 5.275%.

Crude oil gained 1.09 cents to close at $69.09 per barrel, natural gas down 26 cent to close at $7.66 per mBtu, and gasoline futures rose 4.2 cents to close at 226.43 cents per gallon.

Gold gained $1.20 to close at $659.90 per ounce, silver lost 2 cents to close at $13.23 per ounce, and copper futures gained $43 to close at $7,554 per metric ton.


Latin American Markets closed higher tracking a rise in metals, energy and commodities trading. Argentina with a rise of 1.1% led the region, followed by 0.4% gain in Brazil, 0.3% advance in Mexico and 0.4% fall in Chile.

In Sao Paulo trading, stocks of energy, steel, mining companies advanced on the rising commodities and oil prices. The real managed to finish near seven-year high against the dollar. One dollar fetched 1.9 real and is likely to advance in the coming weeks. Weekly trade surplus for the week ended June 17 was reported at $656 million, a decline from the previous weekly surplus of $746 million. The economy expanded at a pace of 4.3% in the first quarter and 0.8% higher from the fourth quarter of last year and inflation is expected to hover around 3.4% for the year. Foreign investors continue to pour money in Brazil stock market on strong economic fundamentals. Embraer reported that it has won order for 30 jets from Lufthansa and 10 jets from Japan Airlines. Bradesco, Petrobras and Rio rose in the trading.

In Mexico City trading, American Movil, Femsa, Wal Mart de Mexico and Grupo Televisa traded fractionally up but Ccemex closed lower.

European Markets closed nearly unchanged with the news of bid for a chemical company and Pearson likely to bid for Dow Jones. Oil prices at a nine-month high, and weak bond yields in the region left seven of the top ten markets in the region closed lower.

Spanish market with a loss of 1% led the region followed by 0.9% decline in Italy and fall of 0.4% in U.K., France and Switzerland.

In London trading, Imperial Chemical Industries gained 17% after the company rejected a buy out offer of $14 billion from Akzo Nobel. Traders speculated that arevised bid with a higher price is likely in the coming weeks. Book and newspaper publishing company Pearson fell 1% on the report that the company is exploring joint proposal with NBC Universal, a division of GE, to purchase Dow Jones & Company. Dow Jones trades at more than 35 times its forward earnings, substantially higher than the earnings multiple of Pearson.

In trading in Paris, Air France- KLM group dropped 1.8% and European Aeronautic Defense & Aerospace gained 1%. EADS received orders worth $42 billion at list prices during Paris Air Show including orders from U.S. Airways, Qatar Airways and Emirates Air.

In Frankfurt trading, DAX index gained a fraction. BASF rose in sympathy with the bid for ICI in London. SAP, software maker, rose 2% followed by 0.6% rise in Allianz SE, Merck fell 3%, and Deutshce Telekom dropped 1.2%. The telephone company is in talks with its union to guarantee jobs to 50,000 people with a lower pay till the year 2012. Metro AG rose a fraction on the news that the company has reported to the exchange that it plans to lift its stake to 98% from 48% in Metro Asset Management, real estate subsidiary.

Asian Markets closed sharply higher in the region led by a rebound in Thailand and record close in Hong Kong and Korea. Thailand led the region with a rise of 3% followed by a gain of 2.9% in Shanghai, 2.7% in Hong Kong, 2% advance in Korea, increase of 1.4% in Taiwan, and Singapore and Japan edged up 1%. India was the only market that closed lower with a loss of 0.6%.

In Hong Kong trading, stocks closed at a record close on the rally in Shanghai and better than expected inflation data released in the U.S. Banks, construction and insurance companies led the increase in the index. China Construction Bank soared 7% and China Life jumped 5%. China Mobile, largest mobile phone carrier by subscriber base, jumped 6% on the news report that the company may raise as much as $10 billion through additional listing in Shanghai. Shanghai market has now recovered from a loss of 22% at the end of May. Petro China jumped 3.3% and Cnooc jumped 5% in Hong Kong trading.

In South Korea brokerage, engineering, and shipping stocks led the market rise. The worries of economic slow down in the U.S. retreated and index closed above 1,800 for the first time. Hyundai Securities surged 15% and Daewoo Securities soared 11%. Samsung Electronics gained 3% as dollar fell against the won, Daewoo shipbuilding & Marine Engineering jumped 6%.

Trading in India bucked the regional trend of rising stocks. The Sensex index fell 0.6% on higher than expected inflation and rising bond yields. Reliance was reported to be in talks to sell its international oil properties to global oil companies. Export sensitive outsourcing companies fell on rising rupee against dollar. Wipro, Infosys, Satyam, and TCS fell more than 1%.

In Shanghai trading stocks continued to gain ground for the eighth trading session in a row. China Merchants Bank gained 8% on the top of 8% gain last week, China Vanke rose another 5% after adding 6% in Friday’s trading. Last week the government reported that retail sales rose 16% in the first five months from a year ago and investment in fixed property continues at elevated level.

In Tokyo main index closed up 1% as dollar traded lower against the yen. The yen fell 1.4% against the dollar and 1.5% against the euro. The yen closed at 56-month low against the dollar. Exporters of high tech and consumer products and real estate companies advanced on lower interest rates expectations in the U.S. Canon gained 2%, Toyota edged 0.5% higher, and Mitsubishi Estate surged 3.5%.

In Auckland trading shares of the busiest airport, Auckland Airport gained 13% on the news that Canada Pension Investment Board has offered to purchase a stake in the airport, valuing the company at $2.8 billion.

1:00PM NY, 5:00 PM Frankfurt European markets finished mostly lower, despite merger activity.