4:30PM NY – 10:30PM Germany

-Yield on 10-year treasury closed at 4.78% and on 30-year bond closed at 4.90%.

-Oil rose $2.09 to close at $61.44 per barrel and natural gas rose 9% to close at $7.73 mBtu.

-Gold closed up $2.50 per ounce to close at $593.30, silver gained 60 cents to close at $11.95 and copper lost 20 cents to close at $3.40.

- Few Asian markets closed higher led by 2% rise in Philippines, 0.9% gain in Singapore, o.7% rise in Australia and 0.6% increase in Thailand. Japan closed down 0.5% and Hong Kong gained 0.02%. India was closed on Diwali and New Year holiday. Tomorrow, Vietnam is likely to get an invitation to join WTO, local stock index is up more than 100% in the last 12 months of trading.

-In European Markets new highs were recorded in several markets. France, Germany and the UK reached new highs not seen since 2001. UK closed 0.5% higher, Spain gained 0.4%, Germany, France and Belgium rose near 0.3%. Switzerland advanced 0.23%.

-South American and Canadian Markets closed higher on no change in interest rates in the U.S. Argentina led the region with a gain of 2.4%, Mexico advanced 0.5% and Brazil and Chile rose 0.2%. Canada gained 1.2% on sharp rise in oil and gas prices.

2:30PM Fed leaves the rates unchanged by 10 to 1 vote.

For the third consecutive month the Federal Reserve in the U.S. kept the target rate for Fed funds at 5.25%, unchanged since June. Fed noted in its statement that core rate of inflation rate remain at elevated level and but inflation pressures are likely to moderate due to lower energy prices. The members of the committee also believe that the economic growth rate has slowed because of the cooling housing market. Despite the slow down in the economy the core rate of inflation has stayed above or near 2% for many months this year. Job creation in the economy has been lackluster over the last six months as well. Many investors have come to believe that Fed’s indicator do not capture the inflation pressures in the service economy and Fed is considerably behind in adjusting the interest rates to moderate inflation.


13:00PM European shares closed near five-year highs.
European stock markets finished the Wednesday session higher, with the three major indexes flirting with five-year highs. The positive sentiment was generated by earnings-inspired news from auto maker DaimlerChrysler and tire maker Michelin, which helped offset nervousness around the Fed Reserve’s decision on interest rates. The German DAX 30 advanced 0.28%, boosted by the automotive sector. DaimlerChrysler rallied 4.2% after the carmaker reported a smaller decline in operating profit than expected. Volkswagen and BMW also posted gains. The French CAC 40 added 0.33%, lifted by tire maker Michelin and luxury goods companies LVMH. However, gains for the index were limited by 1% decline for STMicroelectronics due to disappointing sales. London FTSE 100 advanced 0.52%, lifted by Kingfisher and Sainsbury, rising 1.6% and 0.7% respectively.

Crude oil climbed after the weekly U.S. inventory data showed the biggest one-week drop of crude oil supplies since July. Crude oil gained $1.32 to $60.67 a barrel. London Brent rose $1.38 to $61.24. Heating oil gained nearly 4 cents to $1.733 per gallon. The U.S. dollar extended recent weakness against its rival currencies. The euro was quoted at $1.2589, up from $1.2566. The dollar bought 119.09 yen, down from 119.27. The British pound stood at $1.8773, up from $1.8742. European gold prices gained ground. In London, gold traded at $587.40 per troy ounce, up from $581. In Zurich, the precious metal traded at $580.70 per ounce, up from $579.60. Silver closed at $11.83, up from $11.51.


11:30AM Stocks were mixed. Tech stocks supported the Nasdaq.
Investors traded cautiously, awaiting the Fed Reserve's decision on interest rates and an indication about the rates outlook. The Nasdaq moved up as tech stocks were driven higher by stronger-than-expected quarterly results from Amazon (AMZN: chart). Shares of online retailer jumped 11.2% on better-than-expected profit and revenue. In contrast, the blue-chip index lost ground, dragged by Dow components Boeing (BA: chart) and General Motors (GM: chart) which released lower earnings views. Altria Group (MO: chart) rose 3.4%, helping to limit losses on the Dow after setting a date to decide the spin-off of its Kraft Foods unit. The Dow was further dragged down by existing home sales data for September showed sales declined more than expected to 6.18 million units from 6.30 million in August. A notable increase by the price of oil contributed to some strength among energy stocks while also contributing to weakness among oil-sensitive stocks. The Dow Industrials were down 26 points at 12,102. The Nasdaq Composite index rose 9 points to 2,354 while the S&P 500 Index was up 2 points at 1,379.

Existing home sales fell more than anticipated.
Wednesday morning, the National Association of Realtors released its report on existing home sales in the month of September, showing that existing home sales fell more than economists had been expecting. The report showed that existing home sales fell 1.9 percent to a seasonally adjusted annual rate of 6.18 million units in September from a 6.30 million unit rate in August. Economists had expected sales to fall to a 6.25 million unit rate. The report also showed that total housing inventory levels fell 2.4 percent to 3.75 million existing homes available for sale at the end of September. This represents a 7.3-month supply at the current sales pace. NAR added that the national median existing-home price for all housing types was $220,000 in September, which is down 2.2 percent from $225,000 in September of 2005.


9:45AM The Dow fell, dragged by Boeing and GM. The Nasdaq gained on Amazon gains.
U.S. stock averages opened mixed, as the Dow slipped below the unchanged line, while the Nasdaq moved modestly higher. The Dow decline was largely due to steep losses by General Motors (GM: chart) and Boeing (BA: chart). Shares of Dow component Boeing (BA: chart) fell 2% after the aerospace giant reported quarterly revenue below expectations, although its earnings came in above the estimates and the company raised its outlook for 2007. General Motors (GM: chart) dropped 4%, despite posting narrower Q3 loss. Meanwhile, the tech-heavy Nasdaq benefited from earnings-inspired gains for Amazon (AMZN: chart). The online retailer jumped 9% on better-than-expected quarterly results, prompting five brokerages to lift price targets on the stock. Some early strength in the semiconductor sector also supported the index, with KLA-Tencor (KLAC: chart) leading the sector higher, rising 8% after the company forecast better-than-expected Q2 revenues. In midmorning trading, the Dow Jones industrial average was down 5.52, or 0.05%, at 12,122.36. The Standard & Poor's 500 index was up 0.65, or 0.05%, at 1,378.03, and the Nasdaq composite index rose 5.63, or 0.24%, to 2,350.47. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.81% from 4.82% late Tuesday.


9:30AM The FTSE 100 in London hit a fresh-year high on Wednesday.
The FTSE 100 in London rose 25.5 points, or 0.4%, at 6,208.0 at mid-day, its highest level since February 2001.

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