New Zealand/Australia Morning Call-Global markets

-----------------------(07:13 / 1813
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,684.80 +142.70 NZSX 50 3,550.40
+4.60
DJIA 12,411.21 -141.03 Nikkei 13,626.45
+558.15
NASDAQ 2,341.32 -32.61 FTSE 5,879.30
-0.80
S&P 500 1,352.62 -14.59 Hang Seng 23,169.55
+852.13
SPI 200 Fut 5,605.00 -61.00 CRB Index 382.48
+5.54
Bonds
AU 10 YR Bond 93.635 -0.005 US 10 YR Bond 3.782
+0.046
NZ 10 YR Bond 6.945 +0.000 US 30 YR Bond 4.611
+0.071
Currencies (Prev at 7pm NZST)
AUD US$ 0.9028 0.9037 NZD US$ 0.7894
0.7874
EUR US$ 1.4634 1.4570 Yen US$ 107.84
108.34
Commodities
Gold (Lon) 906.00 Silver (Lon) 17.260

Gold (NY) 906.10 Light Crude 94.79
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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 fell on Thursday after Federal
Reserve chief Ben Bernanke said he saw sluggish economic growth
ahead and unfavorable brokerage reports on two semiconductor
makers sparked a sell-off in technology shares.

Goldman Sachs removed Intel Corp (INTC.O: Quote, Profile, Research), the world's
largest chip maker, off its list of top picks, while two
brokerages cut their price targets on graphics chip maker
Nvidia Corp (NVDA.O: Quote, Profile, Research).

Bernanke also said he sees investment banks taking more
write-downs on losses from subprime mortgages, dragging on
financial shares and pushing the S&P financial index
down 1.3 percent.

The Dow Jones industrial average .DJI was down 104.13
points, or 0.83 percent, at 12,448.11. The Standard & Poor's
500 Index .SPX was down 10.04 points, or 0.73 percent, at
1,357.17. The Nasdaq Composite Index .IXIC was down 22.35
points, or 0.94 percent, at 2,351.58.

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LONDON - Britain's top share index closed flat on Thursday,
wiping out earlier gains, as comments from the U.S. Federal
Reserve chairman warning of more write-downs in the financial
sector overshadowed gains in commodity stocks.

After trading in positive territory for most of the
session, the FTSE 100 index .FTSE ended little changed at
5,879.3 points, as U.S. stocks fell around 1 percent.

Banks had been the underdogs for most of the day, and Fed
chief Ben Bernanke added to their woes when he said he expected
to see more write-downs from investment banks, although he saw
no imminent threat of bank insolvencies.

The comments came on the back of losses of more than 8
percent in Switzerland's UBS (UBSN.VX: Quote, Profile, Research) which shocked markets
with $26.6 billion in new exposure to risky U.S. mortgages and
other assets.

- - - -

TOKYO - Japan's Nikkei average surged 4.3 percent on
Thursday, posting the biggest one-day gain in six years, as a
pair of economic reports provided investors some relief about
the economic outlook in the United States and Japan.

Data showing much stronger-than-expected Japanese economic
growth in the fourth quarter and solid U.S. retail sales
spurred buying across the board, with Honda Motor Co Ltd
(7267.T: Quote, Profile, Research) and other exporter shares also getting a boost from a
weaker yen.

The gross domestic product figures came of the heels of
surprisingly good U.S. retail sales figures for January
released the previous day. [ID:nN13334844]

The benchmark Nikkei .N225 vaulted 558.15 points to
13,626.45. But so far this year, the Nikkei is still down 11
percent.

The broader TOPIX index gained 3.7 percent, or
47.09 points, to 1,332.44.

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FOREIGN EXCHANGE

NEW YORK - The dollar dipped against the euro and yen on
Thursday after Federal Reserve Chairman Ben Bernanke said the
U.S. economic outlook had worsened and that the central bank
would act as needed to support growth.

In remarks to the Senate Banking Committee, Bernanke said
falling home values, a softer job market and high energy prices
are expected to hurt consumer spending in the short run.

Bernanke's comments reinforced the impression that the Fed
will cut interest rates, with rate futures pricing in a
half-point rate cut in March.

Traders pushed the euro up to $1.4633 <EUR=>, up 0.5
percent from a day ago and just shy of a $1.4647 session peak.

Sterling rose 0.4 percent to $1.9708 <GBP=> on while the
dollar fell from an earlier one-month high of 108.61 yen <JPY=>
to 107.91 yen, down 0.4 percent from late Wednesday.

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TREASURIES

NEW YORK - Long-dated U.S. government bond prices slid on
Thursday after a report showing growing exports exacerbated
worries that inflation could get out of hand if the Federal
Reserve keeps cutting interest rates, as signaled by the
central bank's chief.

The 30-year bond fell for a third straight day, pushing its
yield to the highest level of the year.

The move initially was driven by data showing that record
exports late last year helped shrink the U.S. trade deficit in
2007 for the first time in six years.

The 30-year bond's yield <US30YT=RR> briefly surged above
4.60 percent to the highest levels since December.

The benchmark 10-year Treasury note's price fell 15/32 for
a yield of 3.79 percent <US10YT=RR>, compared with 3.74 percent
late Wednesday.

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COMMODITIES

- - - -

GOLD

NEW YORK - New York platinum futures firmly breached the
$2,000 level on Thursday, as news of South Africa's power
crisis could persist for years fed fears of a worsening market
deficit for the white metal.

Gold contracts erased initial losses on inflation concerns
after crude oil resumed a rally toward $100 a barrel as energy
prices rose sharply on supply worries.

At 10:43 a.m. EST (1543 GMT), the active NYMEX platinum
contract for April delivery PLJ8 was up $21.30, or 1.1
percent, to $2,005 an ounce, after hitting a record high of
$2,030.60 in overnight trade. Spot platinum <XPT=> fetched
$1,997/2,007.

The gold contract for April delivery at the COMEX division
of the New York Mercantile Exchange GCJ8 climbed $2.90 to
$913.10 an ounce. It peaked at $917.30 after bottoming at
$904.80.

Spot gold <XAU=> was quoted at $910.80/911.70, versus
Wednesday's New York close of $906.70/907.50. London bullion
dealers fixed the afternoon spot price at $906.00.

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BASE METALS

LONDON - Aluminium jumped 5 percent to its highest level
since July 2007, driven by fears of reduced supply owing to
power shortages in South Africa and China.

Aluminium for delivery in three months MAL3 rose to
$2,844 per tonne, its highest since July 23, 2007 and ended the
day at $2,810 per tonne, up $119 or 4.4 percent from
Wednesday's close.

Copper MCU3 ended the day down at $7,680 per tonne, $100
lower than Wednesday's close. Some analysts said the
expectation of a hefty rise in Shanghai inventories weighed on
prices.

Zinc MZN3 lost $64 to $2,351 per tonne.

Lead MPB3 was $15 softer at $3,015 per tonne, tin MSN3
shed $200 and was quoted at $17,000 and nickel MNI3 was down
$100 at $27,900 per tonne.
Metal Prices at 1722 GMT:

- - - -

OIL

NEW YORK - U.S. crude oil futures extended gains to more
than $2 Thursday morning, following up on Wednesday's advance
despite bearish inventory data.

Earlier economic data showing fewer jobless benefits claims
and Wednesday's surprise rise in retail sales were supportive,
traders said.

On the New York Mercantile Exchange at 11:10 a.m. EST (1610
GMT), March crude CLH8 was up $1.85 or 1.95 percent at $95.12
a barrel, trading from $93.25 to $95.44, the highest level
since the $96.24 peak on Jan. 10.

In London, March Brent crude LCOH8 was up $1.93 or 2.07
percent at $95.25 a barrel. The contract expires on Thursday.

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