Bond Yields increased on 10-year U.S. bonds to 3.88% and 30-year bonds increased to 4.44%.

[R]Commodities, Metals, and Currencies[/R]

Crude oil fell $1.54 to close at $94.13 per barrel for a front month contract, natural gas increased 19 cents to $8.29 per mBtu, and gasoline futures decreased 6.79 cents to close at 236.76 cents per gallon.

Gold increased $13.30 in New York trading to close at $895.00 per ounce, silver closed up 44 cents to $16.28 per ounce, and copper for front month delivery decreased 0.20 cents to 328.15 per pound and in London copper futures increased $3.50 to $7,206.50.

Dollar edged higher against euro to $1.4805 and lower to 109.380 yen.


[R]2:00PM New York, 7:00PM London –The Bank of England holds rates at 5.5%.[/R]

In London trading FTSE 100 declined 0.8% or 50 to 6,222.70.

Of the 102 FTSE stocks 29 gained, 72 declined, and 1 was unchanged.

Sainsbury led advancers with a rise of 6.30% after December sales rose 5.9% on the back of a 20% price cut for DVDs and discounts on select television sets.

The Bank of England announced today that the nine-member Monetary Policy Committee left the benchmark interest rate unchanged at 5.5%. The bank is trying to forestall the rising inflationary pressures induced by soaring energy costs, high taxes and increased mortgage repayments.

Minutes of the meeting will be published on January 23.

Separately, the European Central Bank also kept interest rates at 4% today.

Chancellor of the Exchequer Alistair Darling told a panel of lawmakers today that the Treasury is planning legislation in May allowing regulators and government to fix problems at troubled financial institutions before there is a run on the bank.

The British lender Northern Rock needed emergency funding of 25 billion pounds from the Bank of England and the bank may be nationalized if it fails to find a “private sector solution”.

Shareholders of the lender will meet on January 25 to consider a resolution meant to compel the company’s board to consult them about the buyout.

Of the 102 FTSE Index shares, Sainsbury led advancers with a rise of 6.30% followed by gains of 3.73% in Kingfisher Plc, of 3.65% in Rexam Plc, of 3.30% in Imperial Tobacco, and of 2.30% in Wolseley Plc.

Retailers rose after Sainsbury reported better-than-expected third quarter profits that saw revenue at stores open at least for 1 year jump 3.7% and total sales climb 5.9%. Online sales also soared 40% through home deliveries of online orders.

Tullow Oil led declining FTSE 100 stocks with a drop of 5.34% followed by losses of 4.55% in First Group Plc, of 4.29% in HBOS Plc, of 4.16% in Whitbread Plc, of 4.07% in Man Group Plc.