New Zealand/Australia Morning Call-Global markets

-----------------------(07:17 / 1817
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,381.40 +63.00 NZSX 50 3,425.44
+4.83
DJIA 12,418.63 -113.97 Nikkei 12,706.63
-38.59
NASDAQ 2,317.82 -23.23 FTSE 5,660.40
-28.70
S&P 500 1,341.10 -11.89 Hang Seng 22,464.52
+152.49
SPI 200 Fut 5,433.00 -24.00 CRB Index 397.95
+8.18
Bonds
AU 10 YR Bond 93.920 +0.035 US 10 YR Bond 3.503
-0.008
NZ 10 YR Bond 6.575 +0.000 US 30 YR Bond 4.347
+0.037
Currencies (Prev at 7pm NZST)
AUD US$ 0.9165 0.9148 NZD US$ 0.8020
0.8023
EUR US$ 1.5798 1.5598 Yen US$ 99.38
100.16
Commodities
Gold (Lon) 946.75 Silver (Lon) 18.070

Gold (NY) 938.30 Light Crude 105.95
----------------------------------------------------------------

Overnight market action. An updated report will be sent after
the close of New York markets.

EQUITIES

NEW YORK - U.S. stocks tumbled on Wednesday, with all three
indexes down 1 percent, as surging oil prices raised fears
about slower consumer spending while financial shares sank
after a prominent analyst said there was no end in sight to a
drop in bank profits.

News that banks' increasing reluctance to provide credit
may derail a $20 billion leveraged buyout of U.S. radio and TV
station operator Clear Channel Communications Inc (CCU.N: Quote, Profile, Research) also
dampened sentiment (For more see [ID:nN25410537]), while
Deutsche Bank (DBKGn.DE: Quote, Profile, Research) warned that the global credit crisis
could hit its 2008 profits. [ID:nL26185681].

The Dow Jones industrial average .DJI was down 130.91
points, or 1.04 percent, at 12,401.69. The Standard & Poor's
500 Index .SPX was down 14.20 points, or 1.05 percent, at
1,338.79. The Nasdaq Composite Index .IXIC was down 29.21
points, or 1.25 percent, at 2,311.84.

- - - -

LONDON - Britain's leading share index fell on Wednesday
after the collapse of takeover talks knocked miner Xstrata
(XTA.L: Quote, Profile, Research) and banks sank on profit-taking in the wake of the
previous session's roaring rally.

Xstrata shed 5.2 percent after the Anglo-Swiss miner and
Vale (VALE5.SA: Quote, Profile, Research) said late on Tuesday they failed to agree on
terms of what would have been one of the world's biggest
takeovers, valued by some analysts at $90 billion.

The FTSE 100 .FTSE ended down 28.7 points, or 0.5 percent
at 5,660.4. The UK benchmark index has fallen more than 12
percent so far this year on fears of a U.S. recession stemming
from a meltdown in risky subprime mortgages, and is on track
for its worst quarter since the third quarter of 2002.

- - - -

TOKYO - Japan's Nikkei average fell 0.3 percent on
Wednesday as exporters such as Canon Inc (7751.T: Quote, Profile, Research) slipped on a
stronger yen and many shares sagged after the date passed for
investors to get the latest dividends.

Japan's three largest banks also fell, with No 3. Mizuho
Financial Group (8411.T: Quote, Profile, Research) down nearly 5 percent, tracking losses
in U.S. peers amid lingering concerns about global credit
turmoil.

One bright spot was zinc smelter Toho Zinc Co Ltd
(5707.T: Quote, Profile, Research), which jumped 7.2 percent, the biggest percentage
gainer on the Nikkei, after Australia's Perilya Ltd (PEM.AX: Quote, Profile, Research)
said it had bid for fellow zinc miner and Toho Zinc affiliate
CBH Resources Ltd (CBH.AX: Quote, Profile, Research) in a friendly deal. [ID:nSYD341070]

The benchmark Nikkei .N225 ended down 38.59 points at
12,706.63. The broader TOPIX index finished down 0.4
percent at 1,237.55.

- - - -

FOREIGN EXCHANGE

NEW YORK - The dollar fell for a second straight session on
Wednesday after an unexpected drop in durable goods orders
heightened worries about the health of the U.S. economy and
backed expectations of further interest rate cuts.

The dollar managed to trim its losses against the yen after
a slightly better-than-expected U.S. new home sales report for
February, but the data did little to ease concerns about the
beleaguered sector.

Both the durable goods and housing reports contrasted with
European data on Wednesday that suggested the euro-zone economy
was much healthier than that of the United States despite a
soaring euro and higher interest rates.

In midday trading, the euro rose 0.7 percent against the
dollar to $1.5736 <EUR=>, less than 2 cents away from its
record high at $1.5905 hit last week. Against the yen, the
dollar fell 1 percent to 99.080 yen <JPY=>.

- - - -

TREASURIES

NEW YORK - U.S. Treasury debt prices rose slightly on
Wednesday as weak economic data and higher oil prices dragged
stock prices lower and created a small safety bid for U.S.
Treasuries.

News that orders for U.S. durable goods, a key gauge of
companies' appetite for investment, fell in February also fed
concerns about the potential effects of the ongoing credit
crisis on the economy.

In midday trade, the benchmark 10-year Treasury note price
<US10YT=RR>, which moves inversely to its yield, was up 3/32,
its yield at 3.50 percent.

Two-year notes <US2YT=RR> were up 1/32 in price, their
yields easing to 1.76 percent from 1.78 percent late on
Tuesday.

- - - -

COMMODITIES

- - - -

GOLD

NEW YORK - U.S. gold futures jumped to a one-week high on
Wednesday, extending the previous session's gains on the back
of a dollar slump and surging crude oil prices, but negative
market sentiment could keep bullion from rising further.

Gold is expected to consolidate further before testing new
highs after a tumultuous price drop last week had put a damper
on the yellow metal's run, market-watchers said.

At 10:54 a.m. EDT (1454 GMT), the active U.S. gold contract
GCJ8 for April delivery on the COMEX division of the New York
Mercantile Exchange rose $11.50, or 1.3 percent, to $946.50 an
ounce, trading between $934.70 and $951 -- the highest level
since March 19.

Spot gold <XAU=> traded at $947.70/948.60, compared with
$934.60/935.40 at the close Tuesday. The London morning gold
fix was $945.75 an ounce.

COMEX May silver SIK8 gained 31.5 cents, or 1.6 percent,
to $18.115 an ounce. It traded between $17.69 and a high of
$18.24.

- - - -

BASE METALS

LONDON - Industrial metals prices edged up on Wednesday as
the dollar slipped against the euro, and copper was also
boosted by shrinking stocks.

Copper MCU3 for three-month delivery on the London Metal
Exchange ended the day at $8,180 per tonne. The metal, widely
used in power and construction, rose 3 percent on Tuesday to
end at $8,075/8,080 a tonne.

Aluminium MAL3 closed at $2,944 a tonne from $2,905 on
Tuesday. Power problems in South Africa and China have hit
aluminium production and exports this year. [ID:nSHA283638]

Zinc MZN3 ended the day at $2,330 a tonne, level with its
closing price on Tuesday, lead MPB3 was at $2,800 from
$2,755, tin MSN3 at $20,300/20,350 from $19,950/20,000 and
nickel at $29,800 from $29,400.

- - - -

OIL

NEW YORK - U.S. crude oil futures surged to $106 Wednesday
afternoon, extending gains after government data showed that
fuel inventories fell much more than expected last week.

Crude's gains began early in the session, in reaction to
the dollar weakening on data showing orders for U.S. durable
goods fell unexpectedly in February.

On the New York Mercantile Exchange at 1:50 p.m. EDT (1750
GMT), crude for May delivery CLK8 traded up $4.51, or 4.46
percent, to $105.73 a barrel, after moving from $101.43 to
$106.

In London, May Brent crude LCOK8 also extended gains and
was up $3.14, or 3.12 percent, to $103.74 a barrel, trading
from $100.75 to $104.

- - - -