4:00PM NY and 10:00PM Germany
Slow down in new home construction worried investors that it may slow economic expansion in the U.S. Oil and metals prices dropped in NY and European trading.

Yield on 10-year bond closed at 4.588% and the 30-year bond closed at 4.670%.

Gold decreased 70 cents to close at $621.80 a troy ounce, silver declined 14.5 cents to end at $12.80 a troy ounce and copper advanced 0.25 cents to close at $3.0950 per pound.

Oil decreased 45 cents to close at $55.81 a barrel and heating oil climbed 0.75 cents to finish at 166.80 cents a gallon. Gasoline gained 0.99 cents to end at 153.95 cents a gallon. Natural gas advanced 42.1 cents to close at $8.176 per mBtu.

Asian markets closed mostly higher led by Philippines with an advance of 0.85%, Singapore with an increase of 0.53% and Australia with a gain of 0.51%. The decliners included India with a decrease of 0.57% and Japan with a loss of 0.45%. Japan fell as concerns over the pace of future interest-rate increases weighed on bank shares.

European markets finished lower led by Norway with a loss of 2.92%, France with a decline of 1.20% and the U.K. with a decrease of 1.01%. There were no advancers. British and French stocks ended lower as oil producers slumped on the decline in crude-oil prices and as American homebuilding sector heightened fears that slowing consumption could hurt exporters to the U.S.

Latin America markets ended lower led by Mexico with a decline of 0.50%, Brazil with a loss of 0.32% and Argentina with a decrease of 0.24%. Canada rose with a gain of 0.17%. The markets closed lower amid falling prices for oil and other commodities.

1:00PM NY – 7:00PM Germany - European stocks closed lower across the region on price weakness in metals, oil and auto stocks.

A sharp decline in oil prices in European trading lowered stock prices of major oil companies. BP in London trading dropped 1.8%, Total in Paris lost 3.5% and Royal Dutch Shell lowered 1.3% at close in European trading.

The general weakness in metals and oil stocks dragged broader averages across the region led by 1.2% decline in Paris, 1.0% loss in Belgium and the U.K. Germany, Spain, and Switzerland lost 0.5%. Norway lost 2.92% on weakness in oil and gas price.

Weakness in mining stocks was seen across the region. U.K. listed Xstrata lost 4.5% and led the sector. ArcelorMittal, Rio Tinto and BHP lost ground in day’s trading as well. However the deal machine was in full swing with the impending offer from CSN, based in Brazil for UK based Corus Group Plc. CSN is likely to offer 475 pence per share of Corus, 4.4% higher than offered by India based Tata Steel Ltd. The Corus stock rose to 495 pence at close signaling that higher bid from Tata is likely.

Both Brazil and India, rich in iron ore need access to European markets and acquiring mills in the region help companies in both countries to secure market in the European region. The deal between Mittal Steel and Arcelor, earlier this year set of a frenzy of mergers in the steel industry. Mittal ultimately raised its initial offer by 50% and was forced to buy at a significant premium Brazilian unit of Arcelor. Several traders expect a bidding war between Tata and CSN to acquire Corus Group.

Chairman of Deutsche Borse said that it plans to look world-wide for its expansion and will not limit its option to building a pan-European exchange. After failing to convince the Borsa Italiana in Milan and Euronext in Paris the exchange has given up hope of forming an European champion.

11:30AM Earnings news from AnnTaylor, Starbucks, Hewlett Packard and Marvell Technology disappointed traders.

Starbucks (SBUX: chart) lost 6.6% or $2.52 to $36.92 on profit decline. In the most recently completed quarter the company reported net income decline of 5.2% to $117.3 million on revenue of $2 billion. The company profit declined for the first time since 2001 on higher operating and store opening costs.

AnnTaylor Stores (ANN: chart) lost 6.5% or $2.64 to $37.04 on lower annual earnings guidance. The company forecasted earnings for the year ending in January 2007 between $2.07 and $2.12 lower than the consensus earnings estimates of $2.16 per share. The company also reported third quarter profit of 54 cents vs 42 cents a year ago.

Marvell Technology Group (MRVL: chart) lost 2.5% or 56 cents to $19.06 on 22% rise in third quarter revenue and 9% sequential decline from the second quarter of 2007. Two analysts cut the rating on the company.

10:30AM Sensex slipped 0.5% in volatile trading on profit-taking.
The Sensex on BSE finished 76.41 points, or 0.50%, lower to 13,429.48. The market-breadth weakened continuously over the course of the trading session today. As 1871 shares declined on BSE, only 657 advanced and 63 stocks were unchanged. From the 30-Sensex stocks, 22 declined while the rest advanced. The turnover on BSE was Rs 4,472 crore, much lower than Rs 6,125.73 crore on Thursday. The turnover on NSE was Rs 8,720.45 crore, lower than Rs 10,321.46 crore on Thursday.

Economic news

The wholesale price index advanced 5.30% in 12 months to Nov. 4, higher than 5.09% the previous week due to a rise in the prices of food articles and manufactured products.