New Zealand/Australia Morning Call-Global markets

-----------------------(07:04 / 1804
GMT)-----------------------
Stock Markets
S&P/ASX 200 5,651.20 -116.00 NZSX 50 3,579.60
+17.20
DJIA 12,559.22 -135.06 Nikkei 13,925.51
-105.79
NASDAQ 2,330.27 -23.51 FTSE 5,965.70
-110.80
S&P 500 1,366.27 -13.75 Hang Seng 24,483.84
+107.85
SPI 200 Fut 5,588.00 -56.00 CRB Index 410.59
+5.15
Bonds
AU 10 YR Bond 93.625 +0.095 US 10 YR Bond 3.717
-0.135
NZ 10 YR Bond 6.990 -0.010 US 30 YR Bond 4.551
-0.105
Currencies (Prev at 7pm NZST)
AUD US$ 0.9491 0.9407 NZD US$ 0.8166
0.8141
EUR US$ 1.5213 1.5105 Yen US$ 105.30
106.28
Commodities
Gold (Lon) 959.75 Silver (Lon) 19.240

Gold (NY) 963.90 Light Crude 101.87

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

EQUITIES

NEW YORK - U.S. stocks tumbled on Thursday as worries about
the economy grew following a weaker-than-expected reading on
gross domestic product and a warning from Federal Reserve
Chairman Ben Bernanke that there probably will be bank failures
because of the housing slump.

Stocks opened lower after new data showing sluggish growth
in the economy, measured by GDP in the fourth quarter of 2007,
and an increase in claims for jobless benefits.

Bernanke, during the second day of his semiannual testimony
before a congressional committee, said there may be some
failures among smaller banks that invested heavily in real
estate because the housing market's severe problems may drain
their capital. He added, however, that the U.S. banking system
overall is in good shape with the biggest banks well
capitalized. For details, see [ID:nN28573663]

The Dow Jones industrial average .DJI was down 127.65
points, or 1.01 percent, at 12,566.63. The Standard & Poor's
500 Index .SPX was down 12.93 points, or 0.94 percent, at
1,367.09. The Nasdaq Composite Index .IXIC was down 22.13
points, or 0.94 percent, at 2,331.65.

- - - -

LONDON - The FTSE 100 .FTSE index of Britain's leading
shares ended down almost 2 percent, near its session low, on
Thursday as Rentokil dragged after a profit warning and banks
headed lower, while Whitbread supported.

The blue-chip index slipped 110.8 points, or 1.8 percent to
5,965.7 as across the Atlantic, U.S. markets fell on recession
fears.

The near 2 percent dip was the FTSE 100's biggest daily
fall in three weeks.

Leading the downside, pest control to parcel delivery group
Rentokil (RTO.L: Quote, Profile, Research) plunged more than 23 percent to 16-year lows
after a second profit warning in as many months triggered calls
for a sale or break-up.

- - - -

TOKYO - Japanese stocks slipped 0.8 percent on Thursday as
a stronger yen hit exporters such as Toyota Motor Corp
(7203.T: Quote, Profile, Research), while worse-than-expected industrial output sapped
investor enthusiasm. [nT57013]

But the market received some support from a newspaper
report that the government has decided not to seek limits on
foreign ownership of airports this year, helping ease investor
worries about the Japanese market being too closed.
[ID:nT92545]

Japan Airport Terminal Co (9706.T: Quote, Profile, Research), which runs Tokyo's
Haneda Airport, jumped more than 5 percent.

The Nikkei average .N225 fell 105.79 points to 13,925.51.
On Wednesday, the benchmark booked its highest close since Jan.
11. The broader TOPIX index .TOPX slid 0.8 percent or 11.42
points to 1,353.10.

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FOREIGN EXCHANGE

NEW YORK - The dollar fell to a record low against the euro
for a third straight day on Thursday as Federal Reserve
Chairman Ben Bernanke did nothing in testimony to the U.S.
Senate to dispel expectations that U.S. interest rates are
headed lower.

The dollar weakened broadly and the key index which
measures it against a basket of currencies plunged to a record
low for the third straight day.

Federal Reserve Chairman Ben Bernanke on Thursday said
that the central bank is in a more difficult position now to
respond to a slowing economy than it was in 2001.

Midway through the New York session, the euro was up 0.5
percent at $1.5202 EUR=, near the session high of $1.5206.

The dollar index, which tracks its performance against six
major currencies, was down 0.6 percent at 73.733 .DXY, just
above a record low of 73.723. The dollar was down 1 percent
against the yen at 105.35 yen JPY= a five-week low.

The dollar fell to a record low against the Swiss franc at
1.0499 CHF=. It last traded at 1.0502.

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TREASURIES

NEW YORK - U.S. Treasury prices surged on Thursday, boosted
as investors scrambled for safety after signs the economy may
be spiraling into a recession and fears that the housing sector
has not yet hit bottom.

The attractiveness of safe-haven U.S. government bonds were
supported by the latest data on initial jobless claims, which
rose to recessionary levels, and by Federal Reserve Chairman
Ben Bernanke, who said in testimony that he expects some small
bank failures as a result of the credit crisis. The Fed chief's
remarks pushed down major U.S. stock indexes by more than 1
percent.

By midday in New York, benchmark 10-year notes US10YT=RR
were up 34/32, yielding 3.72 percent, down from 3.85 percent
late on Wednesday. The yield had peaked at 3.96 percent last
week, a high for the year and sharply up from the 4-1/2-year
low of 3.2850 percent struck last month. Bond yields move
inversely to prices.

Two-year paper US2YT=RR yielded 1.88 percent, down from
2.01 percent on Wednesday, and was on pace for the lowest close
in nearly four years.

These moves kept the spread of the 10-year yield over the
two-year at around 184 basis points. Earlier this month, the
curve steepened to over 190 basis points, the widest in 3-1/2
years, but that shrank to around 176 basis points last week.

- - - -

COMMODITIES

- - - -

GOLD

NEW YORK - Gold futures jump to a record high Thursday on
the back of a lower dollar and rising crude oil prices, and
dealers say possible further weakness of the U.S. currency and
speculation of further rate cuts should continue to fan
investor buying of gold. COMEX gold futures for April delivery
GCJ8 gains $7.30 to $968.30 an ounce by 12:19 p.m. EST (1719
GMT), trading between $955.50 and $970.00. COMEX estimated
11:00 a.m. volume at 93,169 lots. Spot gold XAU= trades at
$965.60/966.40, against the $957.50/958.30 in New York late on
Wednesday. London bullion dealers fixed the afternoon spot
reference price at $959.75.

- - - -

BASE METALS

LONDON - Nickel jumped 7.5 percent to a three-month peak on
Thursday, lifted by news of a strike at BHP Billiton's (BLT.L: Quote, Profile, Research)
ferronickel mine in Colombia, while tin touched another record
high on supply constraints.

Nickel for three-months delivery on the London Metal
Exchange MNI3 rallied to $31,400 per tonne, its highest since
November, before ending the day at $31,100 per tonne, compared
with $29,200 at the close on Wednesday.

Supply constraints pushed other metals higher too, such as
tin. The metal MSN3 touched a record high of $18,900 per
tonne and closed at $18,850.

Three-months copper MCU3 closed at $8,510 per tonne in
open outcry trade, up slightly from $8,440 on Wednesday and
compared to an earlier 21-month peak of $8,570 per tonne.

Aluminium MAL3 closed at $3,150 a tonne from $3,095 on
Wednesday, after earlier trading up $3,159.75, the highest
since May 2006. Zinc MZN3 closed at $2,795, up $110, while
lead MPB3 closed at $3,400 compared to $3,345 on Wednesday.

- - - -

OIL

NEW YORK - U.S. crude oil futures jumped on Thursday, as
speculative buying on a weak dollar and news of Nigerian output
snagged earlier in the week pushed prices near the record high.

On the New York Mercantile Exchange at 11:33 a.m. EST (1633
GMT), April crude CLJ8 was up $1.86, or 1.87 percent, at
$101.50 a barrel, trading from $98.91 to $101.90. It hit a
record $102.08 Wednesday, before retreating under $100.

In London, April Brent crude LCOJ8 rose $1.47, or 1.5
percent, to $99.74 a barrel, moving from $97.45 to $100.29.

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