New Zealand/Australia Morning Call-Global markets

-----------------------(07:14 / 1814
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,134.20 -46.20 NZSX 50 3,520.46
-27.29
DJIA 11,997.98 +257.83 Nikkei 12,658.28
+126.15
NASDAQ 2,219.14 +49.80 FTSE 5,690.40
+61.30
S&P 500 1,300.12 +26.75 Hang Seng 22,705.05
+290.30
SPI 200 Fut 5,270.00 +156.00 CRB Index 413.88
+1.72
Bonds
AU 10 YR Bond 93.755 -0.015 US 10 YR Bond 3.598
+0.132
NZ 10 YR Bond 6.720 +0.000 US 30 YR Bond 4.533
+0.067
Currencies (Prev at 7pm NZST)
AUD US$ 0.9260 0.9202 NZD US$ 0.8023
0.7936
EUR US$ 1.5319 1.5344 Yen US$ 103.21
102.03
Commodities
Gold (Lon) 970.00 Silver (Lon) 20.250

Gold (NY) 973.00 Light Crude 107.80
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Overnight market action. An updated report will be sent after
the close of New York markets.

EQUITIES

NEW YORK - U.S. stocks surged on Tuesday, led by financial
shares, after the Federal Reserve said it would add up to $200
billion to strained credit markets as part of a coordinated
effort with other central banks.

In a surprise announcement, the Fed said it was expanding a
securities lending program and will accept a broader base of
securities as collateral, including many mortgage bonds whose
value has declined as the housing bubble burst.

U.S. stocks were on track for their second-biggest climb of
the year following the move. Both advances followed Federal
Reserve actions, with the Fed slashing interest rates in an
emergency move Jan. 22, along with Tuesday's cash infusion.

The Dow Jones industrial average .DJI jumped 177.56
points, or 1.51 percent, to 11,917.71, after earlier rising
more than 2 percent to an intraday high at 12,022.16. The
Standard & Poor's 500 Index .SPX climbed 17.53 points, or
1.38 percent, to 1,290.90. The Nasdaq Composite Index .IXIC
gained 35.93 points, or 1.66 percent, to 2,205.27.

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LONDON - Britain's blue-chip index ended 1.1 percent higher
on Tuesday as banking stocks pushed on after the Federal
Reserve teamed up with other major central banks to ease credit
conditions, boosting equity markets.

The FTSE 100 .FTSE climbed 61.3 points at 5,690.4 to snap
a three-day losing streak after touching a high of 5,783.4.

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TOKYO - Japan's Nikkei average ended in positive territory
on Tuesday after touching its lowest in two and a half years on
worries about the U.S. economy, its recovery helped by buying
of JFE Holdings (5411.T: Quote, Profile, Research) and other steel firms.

A late wave of short-covering helped lift even banks such
as Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research), which with other
major banks touched a nearly four-year low at one point, while
talk of an emergency rate cut by the Federal Reserve also gave
support.

Market participants said there also appeared to have been
bargain-hunting by investors attracted by the inexpensiveness
of the Nikkei, which is down 17.3 percent this year, during
which it has only had two positive weeks.

The benchmark Nikkei .N225 ended up 1.01 percent at
12,658.28 for its first positive close in three sessions. It
earlier slipped to 12,352.79, its lowest since Aug. 29, 2005.

The broader TOPIX was up 0.9 percent at 1,235.15
after also hitting a two and a half year low in early trade.

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FOREIGN EXCHANGE

NEW YORK - The dollar rose sharply on Tuesday after the
Federal Reserve announced new measures to inject liquidity into
the financial system, easing concern about a deepening credit
crisis and a U.S. recession.

The dollar soared against the yen and was on pace for its
biggest daily gain in three months after the Fed said it would
lend primary dealers up to $200 billion in Treasury securities
and allow them to use agency and mortgage debt as collateral.

It also rebounded from a record low against the euro and
jumped against the Swiss franc after the Fed announced its
plans, which will be coordinated with other central banks.

The dollar hit a session high of 103.52 yen, well off an
eight-year low around 101.40. It last traded at 102.80 yen, up
1.2 percent on the day, its best daily performance since
December.

The euro retreated from an all-time high just short of
$1.55 and fell as low as $1.5283 before edging back to $1.5335
<EUR=>, little changed on the day.

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TREASURIES

NEW YORK - U.S. government bond prices plunged on Tuesday
after the Federal Reserve announced a fresh set of liquidity
measures in yet another effort to breathe some life into ailing
credit markets.

The new lending facility allows banks to use some of the
very assets that have been at the heart of this crisis,
including agency and mortgage-backed debt, as collateral for
their borrowing.

That prospect encouraged more risk-taking on the part of
investors, who jumped out of Treasuries to pile into equities
and commodities. Stocks rose sharply and oil was once again
flirting with highs near $110 a barrel.

The pain was felt most heavily at the short end of the
yield curve, with two-year notes <US2YT=RR> diving an unusually
large half point in price for a yield of 1.75 percent.

Benchmark 10-year notes <US10YT=RR> dropped 27/32 for a
yield of 3.57 percent, up 10 basis points.

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COMMODITIES

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GOLD

NEW YORK - Spot gold <XAU=> closes at $974.55/975.25 an
ounce at 1615 GMT in Europe on Tuesday after falling to a low
of $964.35, against $974.10/974.90 in New York late on Monday.
Slips earlier as the dollar jumps after the U.S. Federal
Reserve announced new coordinated liquidity actions.

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BASE METALS

LONDON - Tin hit a new high in London Metal Exchange
business on Tuesday on supply worries, while copper hovered
within recent range, traders and analysts said.

Copper for delivery in three months MCU3, often seen as a
key gauge of real economic activity, traded as high as $8,515
per tonne, up $205 from Monday's close, before ending the day
down $35 at $8,275.

Tin MSN3, which has gained 18 percent since the start of
the year on worries about restricted supply, hit a record
$19,400 per tonne, before closing at a quote of $19,250/19,300,
up $200 from Monday.

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OIL

NEW YORK - U.S. crude oil futures rose back up sharply by
midday on Tuesday in volatile trading, on technical strength
amid skepticism about the dollar's long-term prospects after
the Federal Reserve's liquidity action.

On the New York Mercantile Exchange at 12:30 p.m. EDT (1630
GMT), April crude CLJ8 was up $1.02, or 0.95 percent, at
$108.92 a barrel, trading from $106.61 to a record high
$109.72. Monday's record peak was $108.21.

In London, April Brent crude LCOJ8 was up $1.15, or 1.1
percent at $105.31 a barrel, trading from $103.30 to $105.82, a
record.

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