[R]4:30PM New York, 10:30PM Frankfurt, 2:00AM Mumbai - Rise in oil and metals prices dominated trading in New York trading for the second day. Oracle earnings and buyback from Texas Instruments helped stock indexes. Dollar fell to three-decade low against Canadian dollar and fell to $1.41 against euro.[/R]

Dow Jones Industrial Average added 53.49 or 0.4% to 13,820.00, Nasdaq increased 16.93 or 0.5% to 2,671.22, and S&P 500 added 6.97 or 0.46% to 1,525.72.

FTSE 100 Index in London gained 27.70 or 0.43% to 6,456.70, in Tokyo markets surged to 16,312.61, down 0.62% or 101.18, and in Brazil, iBovespa Index closed 1.6% higher or 892.35 to 57,798.79.

Bond Yields fell on 10-year U.S. bonds to 4.64% and 30-year bond to close at 4.90%.

Crude oil fell $0.16 to close at $81.62 per barrel for a front month contract but still up 34% for the year so far, natural gas added 7 cents to $6.08 per mBtu, and gasoline futures increased 4.17 cents to close at 213.51 cents per gallon.

Gold fell $1.00 in New York trading to close at $738.90 per ounce but traded at intra-day record of $747.10, silver closed up 15 cents to $13.62 per ounce, and copper for front month delivery in London added $1.00 to $7,920.00 per pound.

Dollar fell to record low $1.41 to a euro and traded at parity with Canadian dollar. Dollar is trading at multi-year low against euro, India rupee, Brazilian real, Norwegian Kroner, and British pound among several other currencies.

Of the 30 stocks in Dow Jones Industrial Average, 5 closed lower, 25 closed higher, and none was unchanged. Home Depot led the decliners for the second day in a row with a loss of 2.3% to $34.51followed by 1.5% loss in American Express, and 0.4% in DuPont. Disney led the gainers with a rise of 1.8% to $34.64 followed by increases of 1.4% in General Motors, 1.3% in Boeings and Verizon. Eight of the 30 stocks gained more than 1% in the index.

Of the stocks in S&P 500, 322 stocks closed higher, 171 fell, and 7 closed unchanged. Nineteen stocks declined more than 4%. Harman International led the decliners with a loss of 21% to $88.80 after the company said that KKR controlled private equity does not intend to close the buyout deal. Other decliners included Tektronix with a loss of 8.3%, Family Dollar with a decline of 4%, and Polo Ralph Lauren with a fall of 3.5%.

In New York traders put asides the inflation concerns after better than expected earnings from Oracle and buy back news from Texas Instruments. Oracle reported 26% increase in earnings. TI offered to buy back $5 billion in stocks and raised its quarterly dividend by 25%. Oracle added 5% and TI increased 2.4%.

Bausch & Lomb (BOL: chart) shareholders passed a resolution to a $3.7 billion offer from Warburg Pincus. The $65 per share offer was lower than $75 per share offer from Advanced Medical. The higher offer included $45 in cash and $30 in stock for each Bausch & Lomb stock. The board recommended all cash offer and rejected offer from Advanced when it asked for more time in August. A week ago, the company cited four proxy advisory firms – Institutional Shareholders Services, Glass Lewis & Co, Egan Jones, and Proxy Governance Inc. – and said that Warburg offer was considered the better of the tow offers on the table.

Stora Enso Oyj of Finland has agreed to sell its interest in eight mills located in the U.S. and Canada to NewPage Holding based in Ohio and controlled by Cerberus Capital. The $2.52 billion transaction involves cash of $1.5 billion, 20% equity stake in the newly combine company valued at $370 million, $450 million debt assumed by Cerberus, and $200 million in vendor financing. The sale of loss making mills generated less than expected by several market analysts but the company stock in Helsinki traded 5.6% higher. Finland government owns 10% stake in Stora Enso.

Royal Dutch Shell (RDS: chart) said that its refinery located in Texas will increase its refinery capacity by 325,000 barrels per day to 600,000 bpd by 2010. The refinery, in equal partnership joint venture with Saudi Arabia, Motiva Enterprises will be the largest refinery in the U.S. after the expansion. The company plans to invest $7 billion in the expansion through earnings, debt, and investments from Saudi Arabia and Royal Dutch Shell. The chief executive in an interview with Dow Jones said that the large and flexible refineries with a capacity to process sour crude will have better financial success.

In Latin Markets trading Brazil led the gainers with a rise of 1.6% followed by increases of 1.0% in Argentina and 0.32% in Mexico. Chile gained 0.2%. Of the 63 stocks in iBovespa index 53 gained, 10 lost, and none closed unchanged. Natura, Net Servicos, and Telemar jumped more than 5%. Brasil Telecom and Telenorte added 4.5%. Online retailer B2W Varejo led the decliners with a loss of 2.6% followed by declines of 2.3% in TAM, and 2.1% in Sadia.

[R]2:00PM New York, 7:00PM London - UK stocks advances as British Energy, Northern Rock stocks gain. Gold price reaches $740 per ounce. Vodafone is in negotiations over $2 billion tax bill.[/R]

In London trading FTSE 100 gained 0.4% or 27.70 to 6,456.70 lifted by gains from British and Energy and resurgent Northern Rock. Of the London stocks, 67 rose, 33 shed while 2 remain unchanged.

Vodafone Group chief executive Arun Sarin said Friday his company is negotiating with the Indian government on tax bill on its acquisition of the majority stake in the country''s cellular company. Early this year, Vodafone paid 5.5 billion pounds for a 52 percent controlling stake in Hutchison Essar, The company is renamed Vodafone Essar from Hutchison Telecom. News reports have said the world’s second largest mobile phone operators had received a $2 billion capital gains tax bill from the Indian tax department.

Gold price reached $740 per ounce on Friday, the highest level in nearly three decades after the U.S. dollar slid to record levels against the euro. The US dollar dropped to a record low of $1.4120 against the euro. Oil price also surged. Gold reached $739 an ounce mid-day London time, the highest level since February 1980. It later traded at between $736.25 and $736.95 an ounce.

The U.K. Treasury said its guarantee on the deposits of Northern Rock Plc will cover renewals as well as existing accounts. The news release on UK Treasury web site “confirmed that the guarantee arrangements for existing deposits in Northern Rock plc would cover all accounts existing at midnight on Wednesday 19 September. This guarantee covers future interest payments, movements of funds between existing accounts, and new deposits into existing accounts. The guarantee will also cover accounts re-opened in the future by those who closed them between Thursday 13 September and Wednesday 19 September, inclusive.”

The Newcastle based bank was bailed out by the Bank of England after it applied for an emergency loan. Northern Rock''s shares rose for the first day in three today after falling 28% on Thursday following the announcement by the Treasury said it won''t guarantee deposits into new accounts.

Northern Rock was considered as acquisition target by Banco Santander according to Guardian newspaper and J P Morgan offer for 500 million pounds of emergency loan according to Daily Telegraph.