10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – Consumer and business confidence in the euro-zone fell on rising commodities prices and inflation. The Fed lowered its key rate by 0.25% to 2% and signaled that more rate cuts may not come in the near future. The Bank of Japan left its rate unchanged at 0.5%. China crude oil and other derivates consumption surged in the first quarter.

Global Markets Update

Consumer confidence in euro area fell to 97.1 in April from 99.6 in March as food and energy prices rise and strong euro raises concern among business executives. The confidence index has declined for eleven months in a row but still remains at elevated level and unemployment in the euro area remains low. Euro fell against dollar but recovered in the New York trading after the Fed lowered its rate after the close of European markets.

German Cabinet Office approved the sale of 24.9% stake in Deutsche Bahn AG by the end of the year. Germany will retain control of stations and rail road tracks. The listing of the railroad operator hopes to be included in the DAX index of 30 stocks.

Siemens AG reported a decline in second quarter profit to 384 million euros from 1.2 billion euros a year ago on 0.5% rise in revenue to 18.09 billion. Orders in the quarter rose 12% lifting the stock 2.20 euros to 75.55 euros.

Alcatel-Lucent SA reported first quarter loss widened to 181 million euros from 8 million euros a year ago on sales decline of 0.5% to 3.86 billion. Alcatel eliminated 1,200 jobs and said that restructuring costs by the end of 2009 will be between 1.7 billion and 1.9 billion euros.

Sanofi-Aventis SA said that the first quarter profit rose 12% to 1.86 billion euros from 1.41 billion euros on revenue fall of 3.3% to 6.94 billion euros. Revenue rose 0.8% on comparable basis from a year ago. Ambien, the drug that lost its patent protection, sales declined 63% to 210 million euros in the quarter. Other leading drugs Lovenox sales rose 13% to 717 million euros, Plavix sales increased 16% to 662 million euros and Lantus sales rose 31% in the quarter. Sales of top 15 drug rose 1.9% to 4.3 billion euros.

Ambien CR lost if patent protection in the U.S. on April 20, 2007 and sales in the country fell to 26 million euro from 363 million euros a year ago.

The Fed decided today to lower its target for the federal funds rate 25 basis points to 2% and signaled that future rate cuts may not be necessary. Two members of the 10 people who voted for the decision dissented. The Fed also indicated that seven month cycle of rate cut may be enough to bring moderate economic growth.

U.S. stocks edged higher in the morning on the release of first quarter GDP data. The economy in the quarter rose at annual rate of 0.6%, same rate as in the fourth quarter of 2007. Higher investment in inventory contributed to the mild gain. Citigroup revised its stock offering plan to $4.5 billion from $3 billion. General Motors reported narrower than expected loss. Procter & Gamble earnings rose 8% on rising demand in China, India and Latin America. Stocks closed lower. General Motors led the gainers in indexes and Citigroup and Unisys led decliners in the indexes.

UK consumer confidence falls to the lowest level in the last sixteen years on worries related to general economic conditions and weak housing market. Nationwide Building Society reported today that U.K house prices declined 1% to £178,555 in April from a year earlier as the credit crunch affect new home purchases. The mortgage lender also forecasts prices may decline as much as 5% this year. Home Retail Group led advancers in the FTSE 100 index shares with a rise of 8.75%.

Stocks in India closed lower ahead of the rate decision in the U.S. The U.S. Fed lowered its key rate by 0.25% to 2% and signaled that future cuts may not be necessary. Reliance Communication earnings surged 71% on 32% rise sales. HDFC declined after it reported 40% rise in income on 33% rise in revenue. Nestle India earnings gained 48% and Videocon Industries profit gained 8%.

Hong Kong retail sales in March surge 20% and in the first quarter rose 17%, lifted by a 29% surge in auto related sales. Separately China reported crude oil consumption in the first quarter rose 8% to 91.8 million tons and consumption of petrol, diesel and kerosene rose 16.5%. Crude oil production in China rose only 2.2%.

The Bank of Japan left its key rate unchanged at 0.5% as economy continues to remain sluggish. Inflationary pressures are on the rise but retail sales remain weak. Japan, in a near 11 year economic slump is now facing inflation from the outside world as commodities and food prices rise. March industrial production declined compared to February and from a year ago. Production is likely to fall further in April. Matsushita surged 14% after it forecasted 10% rise in the current year profit.

European Markets indexes

In London FTSE 100 Index closed lower 2.10 or 0.03% to 6,087.30, in Paris CAC 40 Index increased 19.44 or 0.39% to close at 4,996.54 and in Frankfurt DAX index higher 63.48 or 0.92% to close at 6,948.82. In Zurich trading SMI increased 67.00 or 0.90% to close at 7,529.00.

North American Markets indexes

Dow Jones Industrial Average fell 11.81 or 0.09% to a close of 12,820.13, S&P 500 closed down 5.36 or 0.39% to 1,385.58, and Nasdaq Composite Index decreased 13.30 or 0.55% to close at 2,412.80. In Toronto TSX Composite closed up 119.99 or 0.87% to 13,945.60.

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

Citigroup led decliners in the Dow Jones Index with a loss of 4% followed by declines in Hewlett Packard of 3.11%, in Home Depot of 1.9% and in AIG of 1.7%.