New Zealand/Australia Morning Call-Global markets

-----------------------(07:04 / 1804
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,435.50 +58.90 NZSX 50 3,619.47
-15.63
DJIA 12,125.22 -129.77 Nikkei 13,215.42
+243.36
NASDAQ 2,245.77 -27.04 FTSE 5,766.40
-87.10
S&P 500 1,315.28 -18.42 Hang Seng 23,114.34
+228.39
SPI 200 Fut 5,375.00 -69.00 CRB Index 414.65
-5.10
Bonds
AU 10 YR Bond 93.790 +0.060 US 10 YR Bond 3.592
-0.091
NZ 10 YR Bond 6.825 +0.000 US 30 YR Bond 4.555
-0.039
Currencies (Prev at 7pm NZST)
AUD US$ 0.9311 0.9335 NZD US$ 0.8002
0.8011
EUR US$ 1.5365 1.5294 Yen US$ 102.92
103.74
Commodities
Gold (Lon) 976.50 Silver (Lon) 20.800

Gold (NY) 988.10 Light Crude 104.32

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

EQUITIES

NEW YORK - Financial shares drove U.S. stocks down sharply
on Thursday after news of a default at a home lender and a
report showing U.S. mortgage foreclosures reached a record
high.

Shares of energy companies also weighed on the market as
oil prices eased from record highs, with Exxon Mobil Corp
(XOM.N: Quote, Profile, Research) down 2.1 percent.

Thornburg Mortgage Inc (TMA.N: Quote, Profile, Research), a "jumbo" mortgage lender,
said it had received a letter from JPMorgan Chase notifying it
of a default after it failed to meet a margin call of about $28
million. Its shares tumbled 56 percent.

Shares of hard-hit bond insurer Ambac Financial Group
(ABK.N: Quote, Profile, Research) dropped almost 10 percent to $7.86. Ambac's slide
followed news that banks have made a firm commitment to buy
more than $500 million of its shares in a planned $1.5 billion
offering -- if other investors don't buy them, according to a
person briefed on the matter.

The Dow Jones industrial average .DJI was down 140.02
points, or 1.14 percent, at 12,114.97. The Standard & Poor's
500 Index .SPX was down 19.67 points, or 1.47 percent, at
1,314.03. The Nasdaq Composite Index .IXIC was down 26.18
points, or 1.15 percent, at 2,246.63.

- - - -

LONDON - Britain's top share index slid on Thursday, with
banks on both sides of the Atlantic hit by fears of more
losses, while weak U.S. housing data fuelled concerns for a
U.S. economy flirting with recession.

The Bank of England kept interest rates on hold at 5.25
percent earlier on Thursday, as expected, but is widely
expected to cut them by the middle of the year to aid an
economy buffeted by a global credit crunch.

The European Central Bank held interest rates at 4 percent.

The FTSE 100 .FTSE ended a volatile trading session down
1.5 percent, or 87.1 points at 5,766.4 as shares slid across
Europe. The index has lost nearly 11 percent so far this year
on fears of a U.S. recession and further credit-related losses
at financial institutions.

FTSE 100 banks all fell and together took about 28 points
off the index, with Barclays (BARC.L: Quote, Profile, Research) down 4.6 percent, Royal
Bank of Scotland (RBS.L: Quote, Profile, Research) down 3.9 percent and Alliance &
Leicester (ALLL.L: Quote, Profile, Research) down 3.6 percent.

- - - -

TOKYO - Japan's Nikkei average rose 1.9 percent on
Thursday, with exporters such as Canon Inc (7751.T: Quote, Profile, Research) climbing on
a stabilising yen and easing concerns about a U.S. recession.

Trading houses such as Mitsubishi Corp (8058.T: Quote, Profile, Research) extended
their gains, buoyed by rising prices of commodities including
crude oil.

Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research) and other bank
shares also rose on hopes that some measures are on the way to
address U.S. subprime problems.

The benchmark Nikkei average .N225 ended at 13,215.42,
one day after logging its lowest close since Jan. 23. The
broader TOPIX index added 1.9 percent to 1,287.55.

- - - -

FOREIGN EXCHANGE

NEW YORK - The dollar fell to lifetime lows against the
euro on Thursday after the European Central Bank downplayed
prospects of an interest rate cut and did not voice concerns
about the single currency's sharp rally.

News that U.S. home foreclosures rose to record highs in
the fourth quarter also added to bearish investor sentiment
towards the greenback, helping to push the dollar to historic
troughs versus a basket of currencies and the Swiss franc.

The euro jumped to $1.5378 <EUR=>, its highest level since
its launch in 1999, according to Reuters data. It was last
trading at $1.5362, up 0.6 percent on the day.

The New York Board of Trade's dollar index, which tracks
the dollar's performance against a basket of six currencies,
tumbled to a lifetime low of 72.963 .DXY, according to
Reuters data.

The dollar declined 0.9 percent to a session low of 103.04
yen <JPY=> and it dropped to a record low against the Swiss
franc at 1.0277 <CHF=>.

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TREASURIES

NEW YORK - U.S. Treasury prices on Thursday rose in
volatile trade on swirling fears about the credit and housing
markets, tearing open interest-rate spreads as investors dumped
mortgage-related debt and sought safety.

The steady flow of chilling news, including talk that UBS
(UBSN.VX: Quote, Profile, Research) was trying to offload $24 billion of Alt-A mortgages
and an affiliate of private equity firm Carlyle Group CYL.UL
CARC.AS failed to meet some margin calls, put dealers on edge
and pushed up safe-haven U.S. government debt.

The roller-coaster ride saw bond prices briefly tumble on a
rumor that the government would explicitly back the debt issued
by mortgage finance companies Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie
Mac (FRE.N: Quote, Profile, Research).

But Treasuries quickly rebounded after the U.S. Treasury
Department said the rumor was untrue.

By late morning, the price of the benchmark 10-year note
<US10YT=RR> had jumped 24/32 for a yield of 3.59 percent, down
from 3.68 percent late on Wednesday. Before Thursday, the
10-year yield, which moves inversely to its price, had racked
up a string of three consecutive days of gains.

The 2-year note <US2YT=RR> gained 6/32 for a yield of 1.53
percent compared with 1.64 percent late Wednesday.

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COMMODITIES

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GOLD

NEW YORK - U.S. gold futures fell 2 percent on Thursday,
trading below $970 an ounce as a sharp fall in crude oil prices
prompted investors to take profits.

At 12:18 p.m. EST (1718 GMT), the active gold contract for
April delivery GCJ8 dropped $20.00 or 2.0 percent to $968.50
an ounce. Just minutes earlier, it had bottomed at $966.50.

- - - -

BASE METALS

LONDON - Copper prices hit a record high on fresh fund
buying on Thursday, but the market then lost some gains as some
investors rushed to cash in profits after a breathless rally.

Copper for delivery in three months MCU3 was at $8,560
per tonne at the close, down from an earlier record high of
$8,820 and from Wednesday's close of $8,690 per tonne.

Nickel futures MNI3 rose to a seven-and-a-half-month high
of $35,150 and ended the day at $33,000 against Wednesday's
$33,400.

Three-months aluminium MAL3 was flat at $3,208. The metal
hit an all-time high of $3,310 in May 2006.

Tin MSN3 hovered close to its all-time high of $19,375.
It hit an intra-day high of $19,350 before closing at $19,150
per tonne, down $100 from Wednesday. Zinc MZN3 lost $115 to
$2,700 and lead MPB3 shed $110 to $3,240.

- - - -

OIL

NEW YORK - U.S. crude oil futures dropped more than a
dollar on profit-taking by midday on Thursday, reversing
direction after surging early to a record near $106 a barrel.

Gasoline futures, pressured by data showing stocks climbed
to a 14-year high last week, led the energy market's decline,
traders said.

Trading was volatile, with prices rising briefly as the
dollar weakened. Traders said profit-taking also hit other
commodities after record runs on Thursday.

On the New York Mercantile Exchange at 12:30 p.m. EST (1730
GMT), April crude CLJ8 was down $1.33 or 1.27 percent at
$103.19 a barrel, trading from $102.85 to a record $105.97.

In London, April Brent crude LCOJ8 moved lower also and
was down $1.03 or 1.01 percent at $100.61 a barrel, trading
from $100.28 to a record $102.95.

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