[R]5:00PM NY, 11:00 PM Frankfurt, 2:30AM Mumbai – Global Markets[/R]

Yields edged increased on 10-year U.S. bonds and closed at 5.13% and 30-year bond rose to close at 5.234%.

Crude oil dropped 68 cent to close at $68.86 per barrel, natural gas down 13 cent to close at $7.39 per mBtu, and gasoline futures fell 0.65 cents to close at 222.81 cents per gallon.

Gold dropped $4.80 to close at $660.00 per ounce, silver lost 3.5 cents to close at $13.25 per ounce, and copper futures lost $121 to close at $7,472 per metric ton.


Latin American Markets closed sharply lower. Mexico led the region with a loss of 1.6% followed by a decline of 1.1% in Brazil, and 0.6% fall in Chile and Argentina. Rising bond yields in New York trading hurt the sentiment across the region. Real, Brazilian currency fell 1.8% from the peak but closed only 1.3% lower. Brazil with interest rate of 12% and inflation of 3.4% has one of the highest yielding debts in the world. Mexican 10 and 20 year bonds fell as well and dragging the peso 1% in trading.

In Sao Paulo trading, Tele Norte and Telemar Norte, two subsidiaries of fixed line operator Telemar declined. The parent Telemar Norte Participacoes has arranged a credit line of $6 billion to purchase preferred shares of its two units. The non-listed parent fixed line operator offered a deal ago that investors rejected as too low. Petrobras (PBR: chart), Banco Bradesco (BBD: chart) and Itau Holdings (ITU: chart) fell in local trading.

In Mexico City trading, the IPC index fell 1.6% on rising yields in bond market and weak currency. Bond market sentiment drove stock trading. Homex, Femsa, Grupo Televisa, American Movil and Telemex fell between 1% and 2% in local and in New York trading. Coca Cola Femsa gained 1%.

European Markets closed higher across the region driven by merger talk and falling bonds. Except Italy and U.K. markets around the region closed higher. Germany closed up 0.7% and closed at record followed by 0.3% gain in France, the Netherlands and Norway. Italy fell 0.2% and U.K. dropped 0.01%.

In London trading, FTSE Index fell a fraction after spending most of the day in the positive territory. Vendanta Resources, largest copper and zinc miner in India, gained 3%, BHP Billiton jumped 1.5%, and Kazakhmys rose 1.3%. Copper futures rose 2% on the worries that strike in Peru and Chile may lower global supply. Tesco fell another 1.9% after dropping 5% in previous session dragging with it Marks & Spencer 2%. British Airways rose 1.1% on a rating upgrade from S&P on improving operating performance. DSG International fell 1.3% on the earnings report that reflected asset write -down in Italy and business closure cost in France. The company reported full-year profit of 5 million pounds compared to profit of 216 million pounds profit a year ago. The company also said that it is not likely to exercise an option to buy Russian chain Eldorado and spend 100 million pounds to buyback stocks. Cadbury Schweppes fell 1.7% on continued restructuring talks.

In trading in Paris, stocks looked at commodities trends. Rising copper and falling rubber price played a role in affecting trading sentiment. Michelin & Cie rose 1.4% on rubber retreating nearly 10% from its peak price a month ago. Total SA gained 0.5% on 6% rise in oil prices in a week of trading. Areva climbed 4.5% on the news that the company has applied for design approval to U.K. Atomic Energy Authority. U.K. is looking for ways to replace its old nuclear plants. Electricite De France gained 4% and ArcelorMittal jumped 1%. Mr. Mittal said in a conference that the company is looking to source 80% of its iron ore needs from its own mines in the next ten years.

In Frankfurt trading, DAX Index closed to a record high on a rise of 0.7%. Alliaz (AZ: chart) rose 2.1% on the news report that the insurance giant is considering to sell stake in Dresdner Bank. Truck maker, MAN AG, gained 2% on the company stating that growth in Eastern Europe and Middle East is helping sales. Wall Street Journal reported that Lufthansa along with private equity firm Apax Partners are looking for ways to bid for Spanish carrier Iberia SA. Fresenius AG fell 3% on the news that Deutsche Bank and WestLB are planning to sell 3.56 million shares in the company. Pfeiffer Vacuum declined 0.9% on weaker performance in the second quarter than in the first quarter, according to company CEO.

Asian Markets closed higher in the region on falling bond yields and optimistic outlook on earnings. Most markets rose except indexes in Korea and Shanghai. Taiwan led the regional indexes with a gain of 2.2% followed by a rise of 1.75% in Thailand, 1.4% in Philippines, and 0.8% in India, Indonesia and Malaysia. Australia and Hong Kong rose 0.4% but Korea fell 1.3% and Shanghai dropped 2.2%.

In Hong Kong trading, a day after holiday, market raced to catch up with rising regional exchanges and closed at a record high for the third session in a row. A talk of offering of $5.6 billion from PetroChina kept investors at the table lifting its share by 5%. Cnooc, oil giant was up 2.5% on a rating upgrade from Credit Suisse.

In South Korea trading, stocks fell from the record high on falling engineering, shipping and brokerage stocks. After the Korean securities said that the government is n favor of more players in the brokerage sectors and may issue license to banks. Merger rumored brokerage stocks fell sharply as hopes of merger between Hyundai Securities and Daewoo Securities faded. Both stocks declined corrected 10%. Kookmin Bank (KB: chart) rose 4% on the news. Korean steelmaker is scheduled to build a steel plant in Vietnam.

In Mumbai trading, banks and auto stocks rallied and led the index higher by 0.8%. State Bank of India reported that it plans to float bonds in international markets worth $225 million and Tata Motors plans to raise $450 million as well. Domestic tranche of ICICI secondary offering was sold in less than 20 minutes to investors in India and international tranche also attracted investment from investors around the world.

In Shanghai trading, stocks fell for the first time after gaining for nine sessions in a row. Talks of large offering from PetroChina (PTR: chart), China Cosco and China Construction Bank sparked worries that liquidity may dry up after the offering. PetroChina plans to offer close to $5.5 billion worth of stocks in Shanghai and its stock gained 5.5% in New York and in Hong Kong trading. China Cosco sold $1.97 billion worth of stocks in an offering today and China Construction Bank is likely to raise at least $1 billion in coming months.

Chinese steel makers sold-off a day after China said that it plans to eliminate tax and rebates and other export incentives to the industry. Laiwu Steel declined 5%, Baoshan Iron and Steel dropped 2.2%, and Wuhan Iron fell 3%.

China Merchants Bank and China Vanke fell nearly 4% after surging more than 15% each in the last week of trading.

In Tokyo trading, Nikkei index gained 0.3% as bond yields fell and export sensitive large cap stocks rebounded. Mitsubishi Heavy Industries gained 4% on the news that the company will benefit from orders in Paris Air Show in the global aircraft industry. The most active stock in the first section on Tokyo Exchange, Mitsubishi Heavy was reported to be in talks with Boeing to market its first passenger jet aircraft. Komatsu gained 2.2%. Falling rubber futures prices helped Japanese tire makers. Sumitomo Rubber Industries jumped 6% and Bridgestone gained 2.2%. Sky Perfect JSAT, cable and Internet services provider surged 6% on the news that the company has agreed to provide hosting services to local video sharing services launched by a Google subsidiary.

In Sydney trading, main index gained 0.4% reflecting regional trend. Copper and oil prices gained in region on the worries of strikes in Chile and Peru. Revised and higher bid for vitamin and pharmacy business of Symbion Health, from Ironbridge Capital and Archer Capital was accepted by the company. The revised bid of A$1.085 included debt of the company. Banking stocks gains led the index to close at a record high. Macquarie Bank rose 2%, QBE Insurance gained 1%, National Australia Bank edged up 0.5%.