[R]5:00PM NY; 11:00PM Frankfurt; 3:30AM Mumbai - GLOBAL MARKETS[/R]
Volatility in New York trading persisted for the most of the session. The morning rally in select large cap stocks failed to broaden and stock fell in the afternoon trading. European stocks gained for the second day on takeover expectations in retailing and gaming industries. Japanese stocks closed lower on weakness in export companies. Philippines surged 3%.

Yield on 10-year bond closed at 4.503% and the 30-year bond closed at 4.641%.

Gold increased $7.000 to close at $653.200 a troy ounce, silver gained 13.5 cents to end at $13.120 a troy ounce and copper advanced $91.500 to close at $5972.000 per ton.

Oil gained $1.16 to close at $61.850 a barrel and heating oil increased 2.020 cents to finish at 176.750 cents a gallon. Natural gas declined 12.7 cents to close at $7.345 per MMBtu. Gasoline went up 4.280 cents to end at 189.610 cents a gallon.

Asian markets closed mostly higher Wednesday as shares continued to recover from last week''s losses, but Japan finished slightly lower as exporters lost ground in volatile trading. The advancers were led by Philippines with an increase of 3.03%, China with a gain of 2.77% and Malaysia with an advance of 2.03%. The decliners were led by India with a decrease of 0.92%, Hong Kong with loss of 0.73% and Thailand with a decline of 0.57%. Australia gained 0.93%.

European markets finished modestly higher, with the few movers including truck maker Scania typically gaining on merger-and-acquisition speculation, while other stocks held flat before key interest-rate decisions and an economic report this week. The advancers were led by Belgium with an increase of 1.21%, Switzerland with an advance of 1.17% and Netherlands with a gain of 0.78%. The only decliner was Italy with a loss of 0.01%.

Latin America markets finished lower as investors continue to watch at international markets cautiously. The decliners were led by Argentina with a decline of 0.48%, Brazil with a loss of 0.30% and Mexico with a decrease of 0.05%. There were no advancers. Canada gained 1.14% with much of the strength coming from the key resource sectors.

[R]2:30PM NY, U.S. Market Movers[/R]

Avalon Pharmaceuticals (AVRX: chart) shares soared 10.8% after the company said it will collaborate with Merck & Co., (MRK: chart), on a cancer treatment. Merck could pay Avalon as much as $30 million if Merck backs the drugs Avalon develops. He kept his ""Buy"" rating and $13 price target on the shares. The deal''s terms provide for Avalon to potentially receive payments of more than $200 million as well as royalties on potential future products.

Chico''s FAS (CHS: chart) rose 10.4% after the retailer posted better-than-expected fourth-quarter sales and said it is comfortable with analysts'' estimates for the current year. For the quarter, the women''s clothing seller earned $18.2 million, or 10 cents per share, including a charge of 3 cents per share. Sales totaled $446.3 million, topping Wall Street''s forecast of $442.6 million. In the year-earlier quarter, Chico''s earned $44.5 million, or 24 cents per share, on sales of $375.7 million.

Friendly Ice Cream Corp. (FRN: chart) shares climbed 15.9% after the ice cream maker and restaurant operator, said it hired Goldman Sachs as financial advisor, and Weil, Gotshal & Manges as legal advisor, to assist the board in exploring strategic options, including a possible sale of the company. The company said that while it will review a wide range of options in consultation with its advisors, there can be no assurance of any particular outcome. Friendly said it does not expect to disclose further developments regarding the process until the review of strategic alternatives has been completed.

Hypercom (HYC: chart) shares fell 10.3% after the payment technology company posted a fourth-quarter loss. The company reported a loss from continuing operations of $2.7 million, or 5 cents per share, on revenue of $64.8 million. During the year-earlier period, the company reported a loss of $3.3 million, or 6 cents per share, on revenue of $68.1 million.

Payless ShoeSource Inc. (PSS: chart) shares rose 8.8% after the shoe retailer posted better-than-expected fourth-quarter results. For the quarter the company earned $24.6 million, or 37 cents per share, on revenue of $692.7 million. The results included a one-time gain of 22 cents per share related to the release of income tax reserves. During the year-earlier period, the company recorded a loss of $5.6 million, or 8 cents per share, on revenue of $611 million.

Tercica Inc. (TRCA: chart) shares surged 23%, a day after a rival agreed to stop marketing a competing drug. Tercica and partner Genentech Inc. had sued a Glen Allen, Va.-based drug maker called Insmed Inc. Insmed makes Iplex, which treats growth disorders. Under a settlement announced late Wednesday, Insmed agreed to stop selling Iplex as a drug treating growth disorders.

Town Sports International Holdings Inc. (CLUB: chart), health club operator, said that its fourth-quarter profit rose more than fivefold, driven by growing membership revenue and ancillary club revenue. Net income climbed to $6.6 million, or 25 cents per share, from $1.2 million, or 7 cents per share, a year ago. Quarterly revenue grew 12% to $110.2 million from $98.5 million, while comparable club revenue increased 7.9%.

CV Therapeutics Inc. (CVTX: chart) shares plummeted 25.3% following mixed results from a late-stage study on its angina drug Ranexa, showing it met company’s safety goal but failed to show a benefit beyond its current indication. But the study failed to meet its primary goal, which measured the effectiveness of Ranexa as a treatment for acute coronary syndrome, or heart disease. The drug is currently approved for the second-line treatment of chronic angina, or angina in patients who have not responded to other treatments.

EFJ Inc. (EFJI: chart) shares tumbled 18.6% after the wireless communications equipment company reported a fourth-quarter net loss of $7.79 million, or 30 cents per share compared with the same quarter last year when the company posted a net profit of $15.4 million, or 59 cents per share. Revenue declined to $23.9 million versus $29.8 million in the same period a year earlier.

Jupitermedia Corp. (JUPM: chart) said it has ended talks to be bought by Getty Images Inc. ((GYI.N)), sending Jupitermedia shares plunging as much as 16.9%.Getty spokeswoman Deb Trevino declined to say why the companies ended the talks.

Plato Learning Inc. (TUTR: chart) slumped 17.5% after the provider of computer-based educational products posted disappointing first-quarter results. For the period the company posted a loss of $4.5 million, or 19 cents per share, on revenue of $17 million. During the year-earlier period, the company reported a loss of $3 million, or 14 cents per share, on revenue of $23.5 million.

Rocky Brands Inc. (RCKY: chart), footwear company, reported a fourth-quarter net loss of $77,875, or a penny a share compared with a year-ago quarter when Rocky Brands posted a net profit of $2.61 million, or 46 cents per share. Revenue declined to $70.6 million against $74.9 million in the same period a year earlier. Shares fell 17.5%.