New Zealand/Australia Morning Call-Global markets

-----------------------(07:23 / 01823
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,405.80 -166.30 NZSX 50 3,584.26
+1.50
DJIA 12,228.21 -38.18 Nikkei 12,992.18
-610.84
NASDAQ 2,261.09 -10.39 FTSE 5,818.60
-65.70
S&P 500 1,328.93 -1.70 Hang Seng 24,331.67
-746.70
SPI 200 Fut 5,398.00 -29.00 CRB Index 419.57
+6.88
Bonds
AU 10 YR Bond 93.780 -0.005 US 10 YR Bond 3.556
+0.038
NZ 10 YR Bond 6.880 +0.005 US 30 YR Bond 4.440
+0.030
Currencies (Prev at 5pm AEST)
AUD US$ 0.9400 0.9358 NZD US$ 0.8065
+0.7990
EUR US$ 1.5184 1.5224 Yen US$ 103.47
+102.73
Commodities
Gold (Lon) 988.50 Silver (Lon) 20.160

Gold (NY) #N/A N/A Light Crude 103.65
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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 declined on Monday as fear of more
fallout from the battered housing sector pulled down financial
shares, but stronger-than-expected factory data helped to limit
losses.

A 4 percent drop in shares of Dow component Boeing Co
(BA.N: Quote, Profile, Research) also weighed on the market after news late Friday the
plane maker had lost a multibillion-dollar U.S. Air Force
contract to competitors. For details, see [ID:nN29239552]

Shares of Bank of America Corp (BAC.N: Quote, Profile, Research), the largest U.S.
bank by market value, slid 2.2 percent to $38.86 after
Countrywide Financial Corp CFC.N, the largest U.S. mortgage
lender, said it may see more credit losses as downward trends
in the economy and in the real estate market conspire to boost
delinquency rates.

The Dow Jones industrial average .DJI fell 48.19 points,
or 0.39 percent, to 12,218.20. The Standard & Poor's 500 Index
.SPX was down 2.52 points, or 0.19 percent, at 1,328.11. The
Nasdaq Composite Index .IXIC was down 8.80 points, or 0.39
percent, at 2,262.68.

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LONDON - Britain's leading share index slid 1.1 percent on
Monday, dragged by banks and oil stocks as investors feared a
U.S. recession was nigh, but global bank HSBC (HSBA.L: Quote, Profile, Research) bucked
the trend on its results and a higher dividend.

HSBC led the FTSE 100 .FTSE gainers, rising 3.1 percent
after saying its profit rose 10 percent last year, as strong
gains in Asia helped it absorb a $17.2 billion hit for bad
debts due to U.S. housing market problems. [ID:nL03104887]

The FTSE 100 ended down 65.7 points at 5,818.6, sealing a
four-day losing run as European shares also fell sharply.

The UK benchmark index lost nearly 9 percent in the first
two months of the year as credit-related writedowns by
financial firms and a slew of weak economic data stoked U.S.
recession fears.

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TOKYO - Japanese stocks fell 4 percent on Monday, with the
Nikkei hitting a nearly six-week closing low as Honda Motor
Corp (7267.T: Quote, Profile, Research) and other exporters were battered by a strong yen
amid growing U.S. recession worries.

Shares of Japanese consumer lender Takefuji Corp (8564.T: Quote, Profile, Research)
sank 6.6 percent to 2,490 yen after it said it may post a loss
of up to 30 billion yen ($290 million) on a structured finance
transaction hit by the global credit crisis [ID:nT140738].

Credit worries battered other financial stocks, but the
main market mover was the yen's surge against the dollar, which
caused Tokyo to sharply underperform other Asian markets.

The benchmark Nikkei .N225 shed 610.84 points, or 4.5
percent, to end at 12,992.18, its lowest close since Jan. 23.

The broader TOPIX ended down 53.13 points or 4
percent at 1,271.15, also its lowest close since Jan. 23.

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FOREIGN EXCHANGE

NEW YORK - The dollar rebounded from lifetime lows against
the euro and a basket major currencies on Monday amid relief
that U.S. manufacturing activity had not deteriorated as
sharply as expected, encouraging investors to take profits.

But analysts said it was unlikely that the greenback's
recovery would be sustained, given a raft of economic data this
week that could reinforce fears of a U.S. recession and a
steeper Federal Reserve interest rate cut later this month.

In midday New York trade, the euro traded flat at $1.5192,
helping to pull back the New York Board of Trade's dollar index
.DXY from a historic low of 73.354. The index, which tracks
the dollar's performance against a basket of six currencies,
last traded 0.1 percent higher around 73.721.

The dollar cut losses against the yen to trade around
103.53 yen <JPY=>, down 0.3 percent on the day. Rising risk
aversion following a drop in global stocks had earlier pushed
the dollar to a three-year low of 102.62 yen.

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TREASURIES

NEW YORK - U.S. Treasury debt prices fell on Monday, as
U.S. manufacturing data that was not as dismal as some had
feared tempered safe-haven bids, offsetting worries about a
recession and troubles in the financial sector.

The Treasury market, trading around historically rich
levels, was also unsettled by remarks from Philadelphia Federal
Reserve Bank President Charles Plosser suggesting that the Fed
should be ready to raise interest rates when financial
conditions stabilize. For details, see [ID:nL03505142].

The yield on the two-year note <US2YT=RR> rose to 1.67
percent after sagging to four-year lows last week on bets that
the Fed would make bold cuts in short-term interest rates to
forestall a recession.

Longer-dated yields climbed on worries about inflation from
surging commodity costs. The benchmark 10-year note's yield
<US10YT=RR>, which moves inversely with price, rose to 3.57
percent, up 6 basis points from late Friday.

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COMMODITIES

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GOLD

NEW YORK - U.S. gold futures rose to a record high on
Monday, nearing the historic $1,000 level, fueled by a
combination of inflation worries, a dollar slide and strong
investment demand amid a broad commodities rally.

Silver also reached a 28-year peak on the back of gold's
strength and robust industrial demand, while the platinum group
metals also gained sharply.

At 11:30 a.m. EST (1630 GMT), gold for delivery in April
GCJ8 on the COMEX division of the New York Mercantile
Exchange jumped $12.70, or 1.3 percent, at $987.70 an ounce. It
hit a bottom at $975.50.

Spot gold <XAU=> was quoted at $984.70/985.60, up from
$970.80/971.60 at the close on Friday. London bullion dealers
fixed the afternoon spot price at $988.50. Silver remained
near its 28-year high on strong investor buying and industrial
demand.

COMEX's May silver SIK8 was up 53.0 cents, or 2.7
percent, at $20.445 an ounce, after surging to a 28-year high
of $20.740 earlier. It bottomed at $19.860 an ounce.

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BASE METALS

LONDON - Investment money pouring into commodities boosted
industrial metals on Monday, with copper rallying 2.6 percent
towards its all-time high, traders and analysts said.

Nickel soared almost 8 percent to its highest level in more
than three-months, while zinc gained around 5 percent and tin
set a fresh record high.

Copper for three-months delivery MCU3 on the London Metal
Exchange touched $8,661 per tonne, its highest since May 2006
and closed at $8,579 per tonne, compared to its close of $8,445
on Friday.

Aluminium MAL3 touched a fresh 21-month high of $3,183
earlier, and ended the day at $3,138 per tonne, up $32 from
Friday.

Tin MSN3 set a fresh record high of $19,050 per tonne and
closed at $18,950 after an industry crackdown in Indonesia.

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OIL

NEW YORK - U.S. crude oil futures surged to a record high
on Monday as the weak dollar fueled commodities and
geopolitical tensions kept bullish momentum intact.

On the New York Mercantile Exchange at 11:27 a.m. EST (1627
GMT), April crude CLJ8 was up $1.55, or 1.52 percent, at
$103.39 a barrel, trading from $100.77 to a record $103.95,
pushing past Friday's record $103.05.

In London, April Brent crude LCOJ8 rose $1.55, or 1.55
percent, to $101.65 a barrel, moving from $99.20 to $102.29.

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