10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – European stocks edged lower on near record crude oil prices. Auto and bank stocks declined.

Global Markets Update

ECB president in the 2007 annual report suggested that the current financial market declines may not be over as banks are reluctant to lend one another. The European and American banks remain heavily leveraged and banks are viewing each other with suspicion.

Deutsche Post declined 1.7% to 20.10 euros after the company and its union failed to agree on pay raise.

Renault reported its first quarter sales rise of 4.2% to 10.2 billion euros and its stock closed lower before the sales release to 66.80 euros.

Nestle reported first quarter sales increase of 6% to Sfr 25.72 billion with organic growth of 9.8%. Food and Beverages also delivered 9.8% organic growth, of which 4.2% consisted of real internal growth. Acquisitions, net of divestitures, added another 3.2% to Group sales, primarily due to the acquisition of Gerber and Novartis Medical Nutrition in 2007. The net currency effect reduced reported group sales by 7% due to the strength of the Swiss franc compared to most other currencies. Nestle expects to complete its 10 for 1 stock split by the end of June.

Tele Atlas fell 3.5% to 25.45 euros after it reported first quarter sales declined to 59 million euros.

Supermarket chain Casino Guichard – Perrachon SA reported its first quarter sales increase of 25% to 6.86 billion euros. Revenue in France rose 5.8% to 4.47 billion euros and sales in the international markets rose 93%, which forms 33% of total sales, on the recent acquisition of supermarket chain Exito in Colombia.

The Bank of England unveiled a plan to exchange £50 billion of high quality mortgage loans with UK Treasury bills for a period between one and three years. Private economists said that the plan may not be adequate. In London trading FTSE 100 stocks fell 0.06% to 6,053.00. ITV led the gainers in the index with a rise of 6% and Admiral Group of 4.5%. Hammerson led decliners in the index with a loss of 5% followed by 4% loss in British Air.

U.S. stocks fell after Bank of America earnings plunged 76% and reported a provision of $6 billion for loan losses. National City, Ohio based lender nearly eliminated its dividend and raised $7 billion at $5 per share, 40% from its stock price on Friday. Arch Coal jumped 5% after it reported surging earnings and revenues on rising coal prices. Sears Holdings fell after Bank of America declined to renew its credit line.

Bank of America earnings in the first quarter declined 76% to $1.21 billion from $5.26 billion on revenue decline of 6% to $17.30 billion. The bank provisioned $6.01 billion compared to $4.78 billion a year ago on rising trading losses and growing non-performing assets. Nonperforming assets were $7.83 billion, or 0.90 percent, of total loans, leases and foreclosed properties at quarter-end compared to $5.95 billion, or 0.68%, at December 31, 2007 and $2.06 billion, or 0.29%, at the end of first quarter.

Stocks in Tokyo edged higher on growing speculation that U.S. subprime loan losses may remain at current levels. Strong earnings from Caterpillar lifted stocks of Kubota and Komatsu. Honda led gainers in the Nikkei 225 index with a surge of 8% followed by a rise of 7% in NEC. Chip maker, NEC reported better than expected operating profit in 2007.

Giant insurance company Ping An in China is reported to have scrapped its plan to sell stock in public offering and instead sell them a private placement through banks. Ping An rose 5%. Sinopec estimated first quarter profit is likely to fall 50% from a year ago on rising crude oil cost. Separately, China is expected to reimburse refiners taxes on crude oil import and significant losses from the price ceiling. Chinese refiners are required to sell petrol at a price fixed by the government. In addition COSCO jumped 7%.

Stocks in India rallied in sympathy with regional gains. Sensex in Mumbai trading rose 1.6% to 16,739. The Reserve Bank of India ahead of its annual fiscal policy review announced 0.5% increase in cash reserve ratio in an effort to cool the inflation. Wholesale and consumer price inflation indexes have been rising rapidly and are now running near twice the target rate set by the government. Titagarh wagon, new issue, was the most active on BSE trading.

Reliance Industries reported fourth quarter revenue rise of 36% to 373 billion rupees or $9.8 billion and profit increase of 24% to 39.1 billion rupees (3,900 crore rupees or $980 million)

European Markets indexes

In London FTSE 100 Index closed lower 3.50 or 0.06% to 6,053.00, in Paris CAC 40 Index decreased 51.34 or 1.03% to close at 4,910.35 and in Frankfurt DAX index lower 56.53 or 0.83% to close at 6,786.55. In Zurich trading SMI decreased 23.08 or 0.31% to close at 7,394.94.

North American Markets indexes

Dow Jones Industrial Average lost 24.34 or 0.19% to a close of 12,825.02, S&P 500 closed down 2.15 or 0.15% to 1,388.18, and Nasdaq Composite Index increased 5.07 or 0.21% to close at 2,408.04. In Toronto TSX Composite closed up 81.59 or 0.57% to 14,318.65.

Of the 30 stocks in Dow Jones Industrial Average, 14 closed higher, 16 closed lower, and none was unchanged.