New Zealand/Australia Morning Call-Global markets

-----------------------(07:05 / 1805
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,608.90 +106.00 NZSX 50 3,629.98
+37.19
DJIA 12,648.66 +42.83 Nikkei 13,389.90
+200.54
NASDAQ 2,366.72 +5.32 FTSE 5,891.30
-24.60
S&P 500 1,372.01 +4.48 Hang Seng 23,872.43
+392.20
SPI 200 Fut 5,695.00 +30.00 CRB Index 392.15
+0.77
Bonds
AU 10 YR Bond 93.870 +0.020 US 10 YR Bond 3.598
-0.008
NZ 10 YR Bond 6.510 +0.000 US 30 YR Bond 4.391
-0.019
Currencies (Prev at 7pm NZST)
AUD US$ 0.9164 0.9170 NZD US$ 0.7864
0.7901
EUR US$ 1.5663 1.5646 Yen US$ 102.38
102.88
Commodities
Gold (Lon) 896.50 Silver (Lon) 17.150

Gold (NY) 903.50 Light Crude 103.81

___________________________(April
4)____________________________
Overnight market action. An updated report will be sent after
the close of New York markets.

EQUITIES

NEW YORK - U.S. stocks rose on Thursday as gains in energy
and mining stocks overshadowed a report suggesting weakness in
the job market.

The market also got a lift from Merrill Lynch & Co Inc
(MER.N: Quote, Profile, Research), whose shares rose 2.4 percent to $46.44 after a report
that its chief executive said the company does not need to
raise more capital. For details, see [ID:nWEN4796]. The S&P
financial index was up 0.9 percent.

U.S. oil CLc1 and metal prices advanced, driving up
shares of Exxon Mobil Corp (XOM.N: Quote, Profile, Research) and aluminum producer Alcoa
Inc (AA.N: Quote, Profile, Research).

Stocks had fallen earlier after government data showed
claims for unemployment benefits rose last week to their
highest in 2 ½ years.

The Dow Jones industrial average .DJI rose 51.05 points,
or 0.40 percent, to 12,656.88. The Standard & Poor's 500 Index
.SPX was up 5.76 points, or 0.42 percent, at 1,373.29. The
Nasdaq Composite Index .IXIC was up 9.14 points, or 0.39
percent, at 2,370.54.

- - - -

LONDON - Britain's leading share index fell 0.4 percent on
Thursday, snapping a three-day winning streak as banks gave up
recent gains, but energy and mining stocks capped losses thanks
to higher oil and metal prices.

The FTSE 100 .FTSE ended down 24.6 points at 5,891.3
after advancing nearly 4 percent over the previous three
sessions.

Banks fell as investors pocketed their profits from this
week's rally, with Lloyds TSB (LLOY.L: Quote, Profile, Research) and Alliance & Leicester
(ALLL.L: Quote, Profile, Research) both down about 4 percent, while Barclays (BARC.L: Quote, Profile, Research)
fell 3.4 percent.

- - - -

TOKYO - Japan's Nikkei average rose 1.5 percent to a
one-month high on Thursday as financial firms extended gains,
but energy was limited by wariness ahead of U.S. jobs data and
earnings from major Japanese firms next week.

Casual-clothing seller Fast Retailing Co Ltd (9983.T: Quote, Profile, Research) rose
4 percent and Toshiba Corp (6502.T: Quote, Profile, Research) jumped 5.9 percent after
saying it was in the race for four nuclear reactor orders in
the United States, which other firms estimate to be worth a
total of $14 billion. [ID:nT85814].

Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) extended gains to
finish up 3.1 percent at 992 yen, having risen more than 100
yen since April 1 as credit concerns eased after a capital
boost by Lehman Brothers LEH.N and a write-down by Swiss Bank
UBS AB <UBSN.VX).

The Nikkei benchmark .N225 gained 200 points to
13,389.90, its highest since Feb. 29. The broader TOPIX
rose 1.4 percent to 1,299.64.

- - - -

FOREIGN EXCHANGE

NEW YORK - The dollar gained against the euro on Thursday
as investors began to reassess expectations of deep U.S.
interest rate cuts.

Federal Reserve Chairman Ben Bernanke said on Wednesday the
U.S. economy may fall into recession in the first half of 2008,
but he was less pessimistic than anticipated, which led
investors to tone down expectations for aggressive monetary
easing.

Bernanke on Thursday reiterated remarks justifying the
government's financial market rescue and acknowledging tough
economic conditions, but did not mention an economic recession
or contraction in his prepared testimony.

In a volatile Thursday session that has seen the dollar
swing between gains and losses against the yen, investors
remained focused on Friday's U.S. non-farm payrolls report for
March and studied any data related to employment.

Data showing the U.S. service sector shrank less than
expected in March was positive for the dollar, but foreign
exchange investors paid particular attention to the steady
employment component. For details, see [ID:nN0336520]

In midday New York trade, the euro was down 0.2 percent at
$1.5668 <EUR=>, having retreated from record peaks above $1.59
touched last month.

The dollar was little changed at 102.23 yen <JPY=>, coming
off a three-week high against the Japanese currency. It was
little changed at 1.0079 Swiss francs <CHF=>.

- - - -

TREASURIES

NEW YORK - U.S. Treasury debt prices mostly rose on
Thursday after a surprisingly big jump in weekly jobless claims
was taken by investors as another sign the U.S. economy may be
in, or on the brink of, recession.

Price gains were limited, however, by data showing the vast
U.S. services sector contracted less than expected in March.

The number of workers applying for unemployment benefits
rose to 407,000 last week -- the highest since September 2005.
The break above the 400,000 level was seen as a real signal of
trouble in the U.S. economy and had investors thinking the
government's March non-farm payrolls report, to be released on
Friday, may be weaker than originally forecast.

Benchmark 10-year Treasury notes <US10YT=RR> were trading
11/32 higher in price for a yield of 3.56 percent against 3.61
percent late on Wednesday, while 2-year notes <US2YT=RR> were
trading unchanged in price for a yield of 1.89 percent.

Five-year notes <US5YT=RR> were trading 4/32 higher in
price for a yield of 2.72 percent from 2.74 percent late on
Wednesday, while the 30-year bond <US30YT=RR> was trading 25/32
higher in price for a yield of 4.36 percent from 4.41 percent.

- - - -

COMMODITIES

- - - -

GOLD

NEW YORK - * Dollar retreats after initially rising against
most currencies, making gold cheaper for non-U.S. investors.

* June gold GCM8 up $12.20, or 1.4 percent, to $912.40
an ounce at 12:02 p.m. EDT (1602 GMT). Range $892 to $913.20.

* Spot <XAU=> rises to $906.30/907.10, from New York's
Wednesday late quote of $898.00/898.80.

* London afternoon fix $896.50.

- - - -

BASE METALS

LONDON - Industrial metals ended in positive terrain on
Thursday, but uncertainty over the health of the U.S. economy
and the state of demand lurked in the background, traders and
analysts said.

Copper for three-months delivery MCU3 on the London Metal
Exchange closed at $8,560 per tonne, up $45 from its close on
Wednesday, when it rallied 2.6 percent.

Earlier it hit an intraday low of $8,420, down 1.6 percent.

Three-months aluminium MAL3 closed at $2,910 versus
$2,935 on Wednesday, lead MPB3 gained $90 or 3.1 percent at
$2,960 and zinc MZN3 ended at $2,320/2,321 against $2,350.

Tin MSN3 rose to $20,195 versus $20,100/20,105 and nickel
MNI3 was up $800 or 2.8 percent at $29,100.

- - - -

OIL

NEW YORK - U.S. crude oil futures rose more than a dollar
in choppy trading midmorning Thursday after dropping sharply
earlier on profit-taking and fuel demand worries amid a
weakening economy.

Traders and analysts attributed the latest rally to a
follow through from Wednesday's strong move coupled with strong
technical support.

On the New York Mercantile Exchange at 11:35 a.m. EDT (1535
GMT), May crude CLK8 was up 53 cents or 0.51 percent at
$105.36 a barrel, trading from $103.21 to $106.44.

In London, May Brent crude LCOK8 pared losses and was off
7 cents or 0.07 percent at $103.68 a barrel, trading from
$102.01 to $104.50.

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