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Market Update : 
ECB, BoE on Hold; InBev Falls
Author: 123jump.com Staff
123jump.com
Last Update: 5:39 PM EDT May 08 2008


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The European Central Bank and the Bank of England left rates unchanged as inflation hovers near or above target level. Unlike the Federal Reserve in the U.S., central banks are hawkish in Europe when it comes to inflation. Recent surge in crude oil price and worldwide food price surge have fueled inflation and fears of wage inflation. InBev, UniCredit and Raiffeisen International fell on earnings. Barclays, Royal Bank of Scotland and Commezbank fell after the rate decision.

 
Brazil led gainers in the Latin American markets with a rise of 1.02% followed by increases in Argentina of 0.38% and in Venezuela of 0.25%, and in Peru of 0.07%. Colombia fell 1.02%, Chile declined 0.09% and Mexico lost 0.03%.

Asian Markets

In Tokyo Nikkei 225 Index closed lower 159.22 or 1.13% to 13,943.26, in Hong Kong Hang Seng index decreased 160.42 or 0.63% closed to 25,449.79. In Australia ASX 200 index higher 54.80 or 0.97% to close 5,723.20. In Malaysia KL Composite index decreased 6.80 or 0.53% closed to 1,280.35.

In South Korea Kospi Index decreased 6.01 or 0.32% to close at 1,848.00, in Thailand SET index closed higher 1.46 or 0.17% to 850.17 and Indonesia JSE Index edged decreased 5.77 or 0.24% to 2,376.93. Sensex index in India decreased 258.66 or 1.49% to 17,080.65.

Commodities, Metals, and Currencies

Crude oil increased $1.04 to close at $124.57 a barrel for a front month contract, natural gas decreased 4 cents to $11.29 per mBtu, and gasoline futures increased 3.36 cents to close at 315.18 cents per gallon.

Gold increased $10.90 in New York trading to close at $882.10 per ounce, silver closed up 17 cents to $16.87 per ounce, and copper for front month delivery decreased 4.65 cents to $3.78 per pound.

Wheat futures increased 14.50 cents in Chicago trading and closed at $8.22 per bushel. Sugar decreased 27 cent to $11.46 per pound. Soybean future closed up 1.00 cents to $13.10 a bushel.

Dollar edged higher and traded near record low against euro to $1.5392 and edged lower against yen to 103.75.

Yields on U.S. bonds decreased to 3.77% with 10 years of maturities and decreased to 4.54% with 30-year of maturities.
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