[R]4:15PM NY, 10:15 PM Frankfurt, 1:00AM Mumbai – Global Markets[/R]

Yields rose on 10-year U.S. bonds and closed at 4.98% and 30-year bond closed at 5.07%.

Crude oil fell 61 cents to close at $65.60 per barrel, natural gas lost 13 cent to close at $8.06 per mBtu, and gasoline futures rose 3.22 cents to close at 220.58 cents per gallon.

Gold dropped $1.20 to close at $675.10 per ounce, silver gained 0.6 cents to close at $13.812 per ounce, and copper futures advanced $187 to close at $7,714 per metric ton.

Asian Markets closed higher and several exchanges reached new records on strong corporate profits. Shanghai led the region with a rise of 2.6%, followed by 0.7% gain in Malaysia and Sri Lanka, and increase of 0.5% in Hong Kong and Japan. Thailand continued to struggle and led the region with a decline of 1.3%, followed by a loss of 0.9% in Indonesia, and 0.4% decline in Philippines. Cnooc and PetroChina gained nearly 4.5% on broker upgrade, in Hong Kong trading. In Tokyo trading, Fanuc gained 1.8% and oil explorer Inpex gained 4.4% and Daichi Sankyo advanced 1.8%. In Indian trading State Bank of India surged 2% on the news that the Government of India will increase its stake in the largest bank. In Korean trading several stocks rose as the indexed reached record level. LG.Philips advanced 4.2% on broker price target revision.

European Markets closed lower across the region on the worries related to lower economic growth in the U.S., and the Fed Chairman Bernanke speech in South Africa and ahead of probable rate hike tomorrow by European Central Bank. Germany, France, and Switzerland led the region with decline of 0.8%. Italy bucked the trend and gained 0.5%. Loss of 7% in discount carrier Ryan Air and easyJet led other airlines in the region lower. Air France-KLM Group lost nearly 4%, Deutsche Lufthansa dropped 2.3% and British Air lost 1.8%. Renault closed higher and reached near 10-year record on comments from CEO to local newspaper. United Utilities in the UK advanced 3% on declaring double profit from a year ago.

Latin American Markets closed lower across the region led by a decline of 0.4% in Argentina, 0.3% loss in Brazil and 0.11% decrease in Chile. Mexico closed 0.4% higher. Brazilian banks and steel companies closed lower on the worries that U.S. economic slow down will affect Brazilian companies. In Mexico trading, WalMex, Mexican subsidiary of Wal-Mart gained 4% ahead of May month same-store sales. Second largest home builder, Homex said that its CEO has resigned as of today without giving any explanation. Chile reported May consumer price inflation of 0.6%, higher than expected rate and April month GDP growth was reported at annualized rate of 6.6%.


[R]1:00PM NY, 5:00 PM Frankfurt European markets ended lower, dragged down by weak travel stocks.[/R]

European stock markets erased earlier gains to close lower on Tuesday, led by weakness in the transport sector as investors sold shares in low-cost airline Ryanair. Worries that the Fed Reserve is less likely to reduce interest rates in the near future also dragged markets down.

Shares of budget airline Ryanair declined 6.8% after it issued disappointing outlook. The Irish carrier said that profit for fiscal 2007 rose a stronger-than-forecast 42%, but also warned that profit would rise just 5%, far below the 42% growth seen last year. Shares of rival easyJet also came under pressure, falling 6.8%.

On the side of the gainers, U.K. utility giant United Utilities rose 2.7% as it reported that its fiscal-year net profit more than doubled and announced a decision to sell its electricity-distribution assets. The German LHS surged 12.8% on deal news. The French CAC-40 lost 0.8% at 6,078.54, the German DAX Xetra 30 slipped 0.7% at 7,919.83, while the U.K.''s FTSE 100 fell 0.5% at 6,632.80


[R]11:30AM U.S. market averages traded lower on strong service-sector data.[/R]

U.S. market averages remained in the negative territory, weighed down by concerns that the Fed Reserve will not cut interest rates in the near future after Chairman Ben Bernanke made upbeat comments on the economy and service-sector data in May topped analyst estimates.

Retail, software and utilities sectors showed considerable weakness. Retailers were led down by Bed Bath & Beyond (BBBY: chart), falling 5.7% after the retailer issued its Q1 profit warning as a public company. Goldman Sachs downgraded the stock to neutral from buy. Another notable decliner in the sector was kitchen-cabinet maker American Woodmark (AMWD: chart) which fell 7.9%. Cache (CACH: chart), women''s apparel retailer, declined 9.9%.

In the utilities sector, Edison International (EIX: chart) slipped 2.3%, FirstEnergy (FE: chart) dropped 2.3%, and Dominion (D: chart) lost 2%. Housing stocks, transportation, and pharmaceuticals also remained under pressure. The Dow Jones industrial average was down 67.46 points, or 0.49%, at 13,608.86. Blue-chip stocks were led down by DuPont (DD: chart), down 2.3%, Merck (MRK: chart) and Home Depot (HD: chart), both falling 1.5%.

The Standard & Poor''s 500 was down 7.22 points, or 0.47%, at 1,531.96. The Nasdaq Composite was down 11.31 points, or 0.43%, at 2,606.98.


[R]9:45AM U.S. stocks opened in the negative on rate concerns.[/R]