French Stocks Retreat; Axa and Credit Agricole Retreat as Natixis Jumps

(Bloomberg) -- French stocks declined for a
third day in four. Financial companies including Axa SA and
Credit Agricole SA led the retreat.

The benchmark CAC 40 Index dropped 29.47, or 0.5
percent, to 5568.42 as of 12:51 p.m. in Paris. The SBF 120
Index fell 0.5 percent to 4064.15.


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Newcastle Coal Price Rises as Heavy Rainfall Disrupts Output in Indonesia

(Bloomberg) -- The price of power-station coal at
Australia's Newcastle port rose 5 percent last week on concern
Asian customers will need to buy in the spot market after heavy
rain led some Indonesian to warn they will miss deliveries.

Coal for immediate delivery at the world's largest export
harbor for the fuel, increased $3.27 to $70.08 a metric ton in
the week ended Aug. 3, according to the globalCOAL NEWC Index.
That's near the record level of $70.88 reached in June. Banpu Pcl
and Straits Asia Resources Ltd. both announced last week they
will miss contracted shipments after declaring force majeure
because of excessive rain.


Read more at Bloomberg Commodities News

Australian Stocks Fall, Led by Macquarie on U.S. Subprime Mortgage Concern

(Bloomberg) -- Australia's benchmark stock index, the
S&P/ASX 200 Index, fell 0.44 percent at 10:05 a.m.

The index of 201 companies traded on the Australian Stock
Exchange fell 27.10 to 6,117.10. Among the stocks in the index,
25 rose, 96 fell and 80 were unchanged.


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US STOCKS-Indexes end down for day;S&P worst month since '04

(Reuters) - All three indexes also ended the month of July lower, with
the S&P 500 booking its worst monthly percentage decline since
July 2004. For the month, the Dow was down 1.5 percent, the
S&P was down 3.2 percent and the Nasdaq was down 2.2 percent.




The Dow Jones industrial average was down 146.32
points, or 1.10 percent, to end unofficially at 13,211.99. The
Standard & Poor's 500 Index was down 18.64 points, or
1.26 percent, to finish unofficially at 1,455.27. The Nasdaq
Composite Index was down 37.01 points, or 1.43
percent, to close unofficially at 2,546.27.


Read more at Reuters.com Bonds News

Lehman Brothers Offers New Muni Derivatives for Institutional Investors

(Bloomberg) -- Lehman Brothers Holdings Inc.
tomorrow will introduce derivatives that track the value of
benchmark five- and 10-year municipal bonds, in an effort to
provide a way for investors to protect against price swings.

The Lehman Municipal Index Swap, comprised of general
obligation bonds rated AA- or better, will also allow investors
to bet on the performance of municipal bonds relative to taxable
yields without buying tax-exempt debt. Currently, municipal
investors use the Securities Industry and Financial Markets
Association Municipal Swap Index or Thomson Financial's
Municipal Market Data index.


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US STOCKS-Indexes add to gains on consumer confidence

(Reuters) - The Dow Jones industrial average was up 126.89
points, or 0.95 percent, at 13,485.20. The Standard & Poor's
500 Index was up 12.93 points, or 0.88 percent, at
1,486.84. The Nasdaq Composite Index was up 21.79
points, or 0.84 percent, at 2,605.07.




Read more at Reuters.com Bonds News

German Stocks Advance, Led by MAN on Earnings; DaimlerChrysler, BMW Rise

(Bloomberg) -- Germany's benchmark DAX Index rose,
heading for the biggest one-day gain in more than two weeks. MAN
AG shares paced the advance after Europe's third-largest
truckmaker reported its 16th consecutive profit increase.

Shares of DaimlerChrysler AG and Bayerische Motoren Werke
AG, the world's biggest luxury carmakers, also climbed.


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Corporate Bond Risk Declines by Record In Europe, Halting Three-Day Rout

(Bloomberg) -- The risk of owning European
corporate bonds dropped by a record today, halting a three-day
credit market rout.

Credit-default swaps on 10 million euros ($13.8 million) of
debt included in the iTraxx Crossover Series 7 Index of 50
European companies tumbled as much as 60,000 euros to 402,000
euros, according to JPMorgan Chase & Co.


Read more at Bloomberg Bonds News

German Stocks Advance; Deutsche Bank, MAN AG, DaimlerChrysler Lead Gains

(Bloomberg) -- German stocks advanced, led by
Deutsche Bank AG, MAN AG and DaimlerChrysler AG.

The benchmark DAX Index added 92.86, or 1.3 percent, to
7549.17 as of 9:10 a.m. in Frankfurt. The HDAX Index of the
country's 110 biggest companies climbed 1.3 percent.


Read more at Bloomberg Stocks News

Agfa, Alcatel-Lucent, Bulgari, Danone, Iliad, MAN: European Equity Preview

(Bloomberg) -- The following stocks may rise or fall
in European markets. Prices are from the last close.

The Dow Jones Stoxx 600 fell 0.2 percent to 372.03. The Dow
Jones Stoxx 50 Index declined 0.3 percent to 3710.74. The Euro
Stoxx 50 Index, a benchmark for the 13 nations using the euro,
dropped 0.1 percent to 4239.18.


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Dollar Drops Versus Euro as Stock Rally Eases Concern Over Credit Risks

(Bloomberg) -- The dollar fell the most in almost
three weeks against the euro as a rebound in U.S. stocks eased
concern over credit risks.

The U.S. currency gained the most last week since January as
subprime losses encouraged investors to avoid riskier assets. The
Standard & Poor's 500 Index rose from its steepest weekly decline
since September 2002. Treasuries fell amid reduced need for the
safety of government debt.


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French Utility Stocks Drop, Led by Suez; Michelin and France Telecom Gain

(Bloomberg) -- French utility stocks dropped, paced
by Suez SA and Veolia Environnement SA. Michelin & Cie. and
France Telecom SA gained.

The CAC 40 Index slid 9.20, or 0.2 percent, to 5634.76 at
9:11 a.m. in Paris. The SBF 120 Index fell 0.1 percent.


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Canadian Stocks Drop, Led by Barrick. Meridian, on Falling Metals Prices

(Bloomberg) -- Canadian stocks dropped a fourth
straight day as Barrick Gold Corp. led raw-materials shares lower
on falling price for bullion and copper.

The Standard & Poor's/TSX Composite Index declined 72.07, or
0.5 percent, to 13,996.09 as of 10:45 a.m. in Toronto, after
earlier climbing as much as 1 percent earlier on better-than-
expected earnings from natural-gas company EnCana Corp.. Yesterday,
the benchmark fell 400.17 points, or 2.8 percent, its worst drop
since April 2004.


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Brazil Stocks Drop on Concern U.S. Growth Will Slow: World's Biggest Mover

(Bloomberg) -- Brazilian stocks fell the most in
almost five months as investors shed riskier emerging market assets
on concern that rising home loan losses in the U.S. will slow
growth.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange fell 2,242.20, or 3.9 percent, to 55,794.57, the most
since Feb. 27 and the biggest move among markets included in global
benchmarks. Mexico's Bolsa fell 706.28, or 2.2 percent, to
31,462.15.


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CSN, Sabesp, Tecnisa, Usiminas and Vale do Rio Doce: Brazil Equity Movers

(Bloomberg) -- Brazil's main stock index rose for the
second time in three days, led by mining company Cia. Vale do Rio
Doce.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange gained 239.50, or 0.4 percent, to 57,682.24 as of 9:42
a.m. New York time.


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European Stocks Erase Gains; Hypo Real Estate, Nestle Lead Decline

(Bloomberg) -- European stocks erased an earlier
advance as shares of Hypo Real Estate Holding AG and Nestle SA
declined.

Europe's Dow Jones Stoxx 600 Index fell less than 0.1
percent to 392.53 at 11:24 a.m. in London. The Stoxx 50 added
less than 0.1 percent, while the Euro Stoxx 50, a measure for the
euro region, lost 0.1 percent.


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European Stocks Erase Earlier Gains; Credit Suisse, Nestle Shares Drop

(Bloomberg) -- European stocks pared earlier gains,
paced by Credit Suisse Group and Nestle SA.

Europe's Dow Jones Stoxx 600 Index fell 0.1 percent to
392.18 at 8:51 a.m. in London. The Stoxx 50 slid 0.1 percent,
while the Euro Stoxx 50, a measure for the euro region, declined
0.2 percent.


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Australia's S&P/ASX 200 Index Slips From Record, Led by Banks, Oil Stocks

(Bloomberg) -- Australia's S&P/ASX 200 Index fell
from a record. U.S.-linked shares such as James Hardie Industries
NV and lenders including National Australia Bank Ltd. dropped
after U.S. banks increased reserves for bad loans.

``The continued fallout from the subprime issue in the U.S.
is tempering people's enthusiasm for financial stocks,'' said
Angus Gluskie, who helps manages the equivalent of about $380
million at White Funds Management in Sydney.


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Yen Rebounds as Investors Trim Carry Trades on Decline in Global Stocks

(Bloomberg) -- The yen rebounded from a record low
against the euro as a slide in Asian stocks spurred traders to
scale back investments in emerging-market assets funded by
borrowing in Japan.

The currency headed for a second day of gains after the
Standard & Poor's 500 Index last week had the first weekly
decline in a month on concern subprime mortgage losses will
worsen a housing slowdown. The yen has dropped against all 16
most-active currencies this year as investors borrowed cheaply in
Japan to buy higher-yielding assets in so-called carry trades.


Read more at Bloomberg Currencies News

Credit Risk Surges as Subprime Mortgage Concerns Sap Investor Appetites

(Bloomberg) -- The perceived risk of owning bank
loans, corporate bonds and securities based on the riskiest home
mortgages surged as worries about accelerating subprime losses
caused investors to flee all but the safest assets.

Corporate bond risk rose to a two-year high in the U.S. and
Europe, according to credit-default swap indexes that allow
investors to speculate on the ability of companies to repay
their debt or hedge against the risk they won't. Indexes tied to
the risk of owning high-yield, high-risk loans fell to records,
suggesting demand is deteriorating for leveraged-buyout debt.
Indexes of credit-default swaps on subprime mortgage bonds also
plummeted to new lows.


Read more at Bloomberg Bonds News