Asia and Europe Follow U.S. Up

by: Dealing Floor

From DealingFloor:

** ASIAN MARKETS @ 6AM EDT **

Nikkei 1,77%; HSI 1,26%; Singapore 1,69%; S&P ASX 200 1,55%

** ASIAN HEADLINES **

- Japan’s Consumer Prices Rise a Sixth Month, Boosting Case for Higher Rates
- Asian Stocks Set for Biggest Gains in Three Weeks; Sony, BHP Billiton Rise
- Billionaire Icahn, Lichtenstein Prepare Hostile Takeover for KT&G Corp.
- China Citic Hires Bankers for IPO in Hong Kong of as Much as $2 Billion
- South Korea Posts Biggest Account Deficit Since 1997 on Higher Oil Costs
- Singapore Plans to Announce Winning Bidder for First Casino-Resort Today
- Allianz Plans to Open More Branches in India and China, Asia Chief Says
- Akhtar Says Pakistan Will Keep Interest Rates Unchanged to Quell Inflation
- Babcock & Brown Increases EPS Growth Forecast to 35 Percent; Shares Surge
- Kolon Engineering, Korea Builders Gain on Land Development, Economy’s Gain
- 5% of China’s oil production is out as a typhoon shut down platforms
- Yen Drops as Finance Minister Tanigaki Says Japan’s Deflation `Persists’

** EUROPEAN MARKETS @ 6AM EDT**

FTSE 100 0.73%; DJ Stoxx 50 0.67%; DAX 30 0.63%; Bloomberg European 500 1.17%

Crude future 71.6; €/$ 1,2814; Gold 651.80

** EUROPE: IN PLAY TODAY **

- Arcelor SA agreed to buy a controlling stake in Russia’s OAO Severstal, in a 13 billion-euro ($16.6 billion) transaction that will create the world’s biggest steelmaker and fend off a hostile bid from Mittal Steel Co. Arcelor gets an 89.6 percent stake in Severstal, other steel and mining assets and 1.25 billion euros in cash from billionaire Alexei Mordashov, the Luxembourg-based company said in a statement today. Mordashov gets 295 million new Arcelor shares at 44 euros apiece, for a total stake of 32.2 percent stake.

- Allianz Plans to Open More Branches in India and China, Asia Chief Says

- Eni SpA: Chief Executive Officer Paolo Scaroni said the board of Europe’s fourth-largest oil company is unlikely to discuss the idea of a merger with Italy’s biggest electricity producer, Enel SpA.

- Porsche AG: The carmaker expects to sell as many as 8,000 Panamera model cars in North America in the first 12 months after its introduction, Boersen-Zeitung said, citing Peter Schwarzenbauer, head of the carmaker’s North American business.

- Santander Central Hispano SA: Spain’s biggest bank, and Total SA, the French oil company, are in discussions about ending a shareholder pact giving them joint control of Spanish oil company Compania Espanola de Petroleos SA.

- Total SA: Europe’s third-largest oil company may face “tough measures'’ from the Russian government over violations discovered by the nation’s scientists in the development of an oil field in the Arctic.

** EUROPE: UPS & DOWNS **

+ TELEKOM AUSTRIA RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ TURKISH EQUITIES RAISED TO `OVERWEIGHT’ AT CREDIT SUISSE
+ GOLDMAN PRICE ESTIMATE RAISED 2.9% TO $180 AT UBS
+ NUTRECO RAISED TO `OUTPERFORM’ VS. `IN-LINE’ AT GOLDMAN
+ UNILEVER RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ VEOLIA ADDED TO JPMORGAN’S `ANALYST FOCUS LIST’
+ ASML RAISED TO `BUY’ FROM `HOLD’ AT CITIGROUP

** US MARKETS ON THURSDAY **

Dow 0,84%; Nasdaq 1,34%; S&P 1,14%; Soxx -0,44%; Russel2k 2,01%; DJAIG 0,95%; 10yr Bond 0,06%; 10yr Yield 5,06%; Crude future 71,58; Gold 652,96

¦ Energy 3,11%¦ Materials 2,09%¦ ConsStaples 1,03%¦ Technology 1%¦ ConsDisc 0,93%¦ Financials 0,91%¦ Utilities 0,91%¦ Healthcare 0,8%¦ Telecom 0,7%¦ Industrials 0,68%

** US HEADLINES **

- U.S. Stocks Rise the Most in a Month on GDP Report; Exxon, U.S. Steel Gain
- Canadian Stocks Post Best Gain in Two Years; Oil, Raw-Material Shares Jump
- Ford to Pay 10.6 Percent Yield in Exchange, Company’s Highest Ever in U.S.
- Treasuries May Decline as Inflation, Growth Reports Point to Rate Increase
- Enron Jurors Say They Focused on Glisan Testimony to Convict Skilling, Lay
- Crude Oil Rises to More Than $71 After Talks With Iran End in a Stalemate
- Gold Rises for Second Day as Some Investors See Recent Decline as Overdone

** US: IN PLAY TODAY **

With the Fed's focus centered on inflation and investors also concerned about rising prices, today’s Personal Income &Spending data at 14:30 CET will provide the market with an update on inflation with the core PCE deflator. Investors will also get a revision to the University of Michigan Sentiment just after the market opens at around 15:50 CET. There are no notable earnings report on the calendar.