New Zealand/Australia Morning Call-Global markets

-----------------------(07:16 / 1816
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,537.60 -120.40 NZSX 50 3,572.90
-39.40
DJIA 12,215.71 +33.58 Nikkei 13,017.24
-189.91
NASDAQ 2,319.80 +14.95 FTSE 5,707.70
-76.30
S&P 500 1,337.75 +6.46 Hang Seng 23,469.46
-853.35
SPI 200 Fut 5,581.00 +38.00 CRB Index 377.45
+1.78
Bonds
AU 10 YR Bond 93.755 -0.005 US 10 YR Bond 3.633
-0.017
NZ 10 YR Bond 6.915 +0.000 US 30 YR Bond 4.417
-0.011
Currencies (Prev at 7pm NZST)
AUD US$ 0.9038 0.9032 NZD US$ 0.7894
0.7896
EUR US$ 1.4506 1.4558 Yen US$ 106.81
107.09
Commodities
Gold (Lon) 918.00 Silver (Lon) 17.370

Gold (NY) 923.50 Light Crude 93.73
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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 were little changed on Monday as
financial sector shares were hurt by worries about the impact
of the credit crisis on insurer American International Group
Inc (AIG.N: Quote, Profile, Research), offsetting bargain hunting and takeover talk in
the technology sector.

Shares of AIG, the world's largest insurer, plunged more
than 11 percent after AIG received a rebuke from its auditors
for how it valued some credit derivatives. It was the worst
one-day percentage drop for AIG shares since the 1987 stock
market crash.

That dragged on financial sector stocks, with the S&P
financials index down 1.7 percent.

The Dow Jones industrial average .DJI was down 13.98
points, or 0.11 percent, at 12,168.15. The Standard & Poor's
500 Index .SPX was up 1.40 points, or 0.11 percent, at
1,332.69. The Nasdaq Composite Index .IXIC was up 5.37
points, or 0.23 percent, at 2,310.22.

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LONDON - The FTSE 100 .FTSE index of Britain's leading
shares extended earlier losses to end 1.3 percent lower on
Monday as financials and banks weighed, credit spreads widened
and inflation data heightened economic concerns.

The blue-chip index fell 76.3 points at 5,707.7 to track
losses across the Atlantic, where U.S. stocks were hit by
renewed concerns over credit losses after insurer AIG (AIG.N: Quote, Profile, Research)
received a rebuke from auditors over credit derivative
valuations.

Reflecting general nervousness, European credit derivatives
index spreads hit record highs as fears persisted over the
state of structured credit products, at the centre of a crisis
in credit markets.

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TOKYO - Japanese markets were closed Monday for a public
holiday.

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FOREIGN EXCHANGE

NEW YORK - The yen climbed broadly on Monday as equities
softened and investors cut back on risk while the euro
relinquished gains against the dollar as the market weighed
inflation remarks from monetary policymakers.

The euro, coming off its worst week against the dollar in
1-½ years, edged up overnight after European Central Bank
governing council member Axel Weber told a German newspaper the
central bank had not relaxed its view on inflation.

But it pared those gains in New York trade as fears of more
credit fallout weakened U.S. and European stocks and reinforced
views that the ECB will have to cut interest rates this year.

By midday, the euro was trading at $1.4504 <EUR=>, little
changed from late Friday, after climbing as high as $1.4577 in
overnight trade, according to Reuters data.

Market unease helped the Japanese currency rise against the
dollar and euro as traders unwound risky trades financed with
cheaply borrowed yen. The dollar fell 0.6 percent to 106.68 yen
<JPY=> and the euro was down 0.6 percent at 154.78 yen
<EURJPY=>.

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TREASURIES

NEW YORK - U.S. Treasury prices rose on Monday as renewed
credit market worries hurt financial stocks and restored the
flight-to-safety bid that has boosted government bonds nearly
nonstop for the past seven months.

Two-year yields were trading not far above their lowest
levels since 2004 as investors sought shelter in the
highest-rated government securities.

Two-year note <US2YT=RR> prices, which move inversely to
yields, rose 2/32 for a yield of 1.91 percent.

Benchmark 10-year Treasury note <US10YT=RR> prices, which
move inversely to yields, rose 11/32 for a yield of 3.61
percent versus 3.65 percent late on Friday.

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COMMODITIES

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GOLD

NEW YORK - U.S. platinum futures rallied to a record high
for the eighth consecutive session Monday on the back of strong
fund buying, as lingering supply concerns in top producer South
Africa boosted prices in an extremely tight market.

Gold contracts held their ground on good investment
interest and inflation fears even though an official from the
International Monetary Fund could approve a proposal to sell
gold to strengthen its budget.

At 11:10 a.m. EST (1610 GMT), the active NYMEX platinum
contract for April delivery PLJ8 jumped $36.00 or 1.9 percent
to $1,920.00 an ounce. Earlier, the April contract had reached
an all-time peak of $1,930.00. Spot platinum <XPT=> fetched
$1,914/1,919.

The gold contract for April delivery at the COMEX division
of the NYMEX GCJ8 was up $2.10 to $924.40 an ounce amid low
volume, trading between $919.60 and $931.00.

Spot gold <XAU=> was quoted at $920.30/921.20, versus
Friday's New York close of $918.00/918.70. London bullion
dealers fixed the afternoon spot price at $918.00.

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BASE METALS

LONDON - Copper prices touched their highest in more than
three months on Monday, underpinned by falling inventories,
analysts and traders said.

Trade in industrial metals was thin, owing to the absence
of big consuming nations Japan and China, where markets are
closed for holidays.

Copper for delivery in three months on the LME MCU3 hit
$7,880 per tonne, its highest since October 29, before ending
the day at $7,765, up $65 from Friday.

Aluminium MAL3 lost $5 to $2,690 per tonne, while zinc
MZN3 was down $5 at $2,445 per tonne.

Lead MPB3 was $60 higher at $3,030 per tonne, tin MSN3
was last quoted at $17,095/17,100 per tonne versus
$17,175/17,200 on Friday, and nickel MNI3 was $50 down at
$28,150 per tonne.

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OIL

NEW YORK - U.S. crude oil futures rose sharply after a
choppy start on Monday as a cold snap, refinery problems and
Venezuela's escalating dispute with Exxon Mobil supported oil
futures combined to boost energy futures.

On the New York Mercantile Exchange at 12:16 p.m. EST (1716
GMT), March crude CLH8 was up $1.88, or 2.05 percent, at
$93.65 a barrel, trading from $90.92 to $94.72, highest since
$96.24 was reached on Jan. 10.

In London, March Brent crude LCOH8 was up $1.84 or 2.0
percent at $93.78 a barrel. The March Brent contract expires on
Thursday.

President Hugo Chavez on Sunday threatened to stop sending
oil to the United States unless it halted an "economic war"
that he said included an Exxon Mobil (XOM.N: Quote, Profile, Research) lawsuit freezing
$12 billion in Venezuelan assets. [ID:nN10578755]

The U.S. State Department said the United States expects
the Venezuelan government to respect international law in
dealing with the court battle between Exxon Mobil.
[ID:nWAT008869]

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