WORLD MARKET UPDATES

US Market Reports

Dow Jones NASDAQ NYSE AMEX

With traders awaiting the release of key data on national manufacturing activity, stocks are turning in a lackluster performance in early trading on Tuesday. The major averages have turned mixed after moving modestly higher at the open. The choppy trading comes ahead of the release of the Institute for Supply Management's report on U.S. manufacturing in the month of February at 10 am ET. Data on January construction spending is due to be released at the same time. Despite the lack of direction being shown by the broader markets, gold stocks are seeing notable strength in early trading, moving higher along with the price of the precious metal. On the other hand, airline stocks have come under pressure over the course of early trading, with a sharp rise by the price of crude oil contributing to the weakness in the oil-sensitive sector. In corporate news, Apple Inc. (AAPL) is anticipated to reveal a new version of its iPad in San Francisco today, according to The Wall Street Journal. Auto parts retailer AutoZone (AZO) reported second quarter net income of $3.34 per share, beating forecasts for earnings of $3.05 per share. Sales for the quarter came in at $1.66 billion, also topping expectations for $1.63 billion. The major averages are currently on opposite sides of the unchanged line. While theNasdaq is down 3.51 points or 0.1 percent at 2,778.76, the Dow is up 11.96 points or 0.1 percent at 12,238.75 and the S&P 500 is up 1.03 points or 0.1 percent at 1,328.25.

European Market Reports

FTSE 100 Euronext Dax perf CAC 40

European Stocks Down From Early Highs  European stocks are having trouble picking up where they left off in February, turning lower Tuesday afternoon amid anxiety over the European Central Bank's interest rate decision later this week. With inflation pressures on the rise, investors are speculating the ECB will lay the groundwork for tightening monetary policy in the coming months. The Euro Stoxx 50 benchmark index of euro zone blue-chippers was up 0.05 percent to 3,014.48, led by German car makers BMW and Daimler. Including U.K. stocks, the Stoxx Europe 50 was down 0.10 percent to 2,710.73, reflecting lingering weakness in London. German shares are especially strong for a second day, with the DAX index rising 40.81 points, or 0.56 percent, to 7,313.13. German stocks ended February higher for a sixth consecutive month. "The party goes on," Oliver Roth, capital market strategist at Close Seydler, told dpa-AFX. "The technical correction is now complete...and the uptrend is still intact." Daimler shares were up 2 percent, and BMW added 2.2 percent. SGL Group was higher after Volkswagen took an eight-percent stake in SGL Carbon. Volkswagen shares are up 1 percent after Chief Financial Officer Hans Dieter Poetsch said Monday a merger of VW's Scania AB truck company and MAN SE is unlikely to happen anytime soon. Meanwhile, earnings results from Aixtron were "slightly better than expected"and its outlook was "in line" with expectations, according to Commerzbank analyst Thomas Becker. Aixtron shares were up 5.4 percent. In France, the benchmark CAC 40 was well off its early highs, rising 0.3 percent to 4,122.74 on the day. Switzerland's SMI index was up 0.69 percent at 6,656.01, led by Richemont andNovartis. U.K. stocks have hugged the flat line for a second straight session. The FTSE 100 is up 0.04 percent at 5,996.22. Associated British Foods is up 3 percent, taking back some of yesterday's significant losses. On the other hand, HSBC Holdings and GKN are down more than 2.5 percent each. In corporate news from around Europe, Raiffeisen Ware Austria, a majority holding of Munich-based BayWa AG, and AGRANA, plan to combine Ybbstaler Fruit Austria GmbH and AGRANA Juice Holding GmbH, both subsidiaries operating in the fruit juice concentrate business, to form a joint venture. Biolitec AG said that its second-quarter revenue increased 15 percent year-over-year to EUR 16.6 million. Technicolor SA reported full-year 2010 loss attributable to shareholders of 69 million euros, narrower than 342 million euros last year. Biolitecshares are flat in Frankfurt. Dublin-based pharmaceutical company Shire Plc said it has received the U.S. Food and Drug Administration approval for Intuniv extended release tablets for treating attention deficit hyperactivity disorder in children and adolescents. Shire shares are up 1.5 percent in London. Nestle SA and packaged food supplier General Mills Inc. are among leading bidders to acquire a 50 percent stake in French yogurt maker Yoplait, Bloomberg reported. Looking at this morning's economic news, operating conditions across Germanmanufacturing sector improved at the sharpest rate in survey history in February, final data from Markit Economics showed Tuesday. The seasonally adjusted Markit/BME manufacturing purchasing managers' indexadvanced to a record- high of 62.7 during the month from 60.5 in January. Eurozone inflation edged up to 2.4% in February from 2.3% in January, flash estimate from the European Union statistical agency Eurostat showed Tuesday. That matched economists' expectations.

Asia Market Reports

Nikkei 225 Hanq Senq Bse Sensex S&P/ASX 20

India's Sensex Gains 600 Points In Post-budget Rally  A slew of investor-friendly Budget proposals such as permission for foreign investors to directly invest in mutual fund schemes, a cut in corporate surcharge, increased focus on rural and infrastructure spending and no tax hikes helped the Indian market rally sharply on Tuesday, a day after the presentation of the federal budget 2011-12. With investors digesting the positive implications of the budget, the benchmark BSE Sensex kept rising until the end of the session before closing 623 points or 3.5 percent higher at 18,446, with all its 30 components advancing. While the budget lacked big-ticket reforms, the finance minister has succeeded in performing a fine balancing act between the twin objectives of growth and fiscal consolidation. Also, as investors had factored in heavy pessimism, no negative news on the taxation front helped boost the overall market sentiment. Adding to the positive momentum, cues from the other Asian and European markets remained positive today on optimistic remarks from veteran investor Warren Buffet and positive economic data. Meanwhile, the output of India's six core infrastructure industries grew by a healthy 7.1 percent in January versus 2.3 percent in November 2010 and 6.6 percent in December, government data released today showed, raising expectations of recovery in industrial output. The core infrastructure industries have a weight of 26.7 percent in the Index of Industrial Production (IIP). Besides, data showing solid growth in February auto sales, a 32.4 percent rise in India'smerchandise exports in January and a positive report on manufacturing activity as revealed by an HSBC survey also triggered hectic short covering. With investors lapping up beaten-down shares across all sectors, the 50-share Niftyclimbed 189 points or 3.54 percent to 5,522, while the BSE mid-cap and small-capindexes ended up 3.20 percent and 2.38 percent, respectively. Auto, banking, realty, capital goods, metal and healthcare stocks were on the buyers' radar with their respective indexes rising between 3 percent and 6 percent. Among heavyweights, utility vehicle manufacturer Mahindra & Mahindra climbed 8.36 percent after the finance minister proposed to launch a national mission for hybrid and electric vehicles in India. Car maker Maruti Suzuki rallied 7.14 percent after data showed its vehicle sales rose 15 percent from a year earlier in February. Tata Motorssoared 5.42 percent after posting a 12 percent rise in its February vehicle sales. Banking stocks such as HDFC Bank and ICICI Bank rose by 4-6 percent. Housing Development Finance Corporation advanced 3.40 percent after the mortgage lender hiked home loan rates by 25 basis points for both new and existing borrowers with immediate effect. State-run oil companies such as BPCL, HPCL and IOC rose by 2-6 percent on the fuel price hike buzz. Cigarette manufacturer ITC gained 2.66 percent, extending its gains for a third consecutive session. Among other top gainers, Infosys, SBI, BHEL, Sterlite Industries, Tata Steel, DLF,Reliance Communication, Bajaj Auto, Larsen & Toubro, Hindalco, NTPC andJaiprakash Associates climbed between 3 percent and 7 percent. Heavyweight Reliance Industries ended up 2.49 percent. In the healthcare sector, Strides Arcolab jumped nearly 16 percent after the company said it has received the U.S. FDA approval to commercialize Vancomycin injection from its new sterile injectable facility in Bangalore. Ranbaxy Laboratories rallied 4.30 percent after it signed a pact with Daiichi Sankyo to market 4 patent drugs of the Japanese company in Singapore. Airline stocks such as Kingfisher, Jet Airways and SpiceJet climbed by 5-10 percent, shrugging off a hike in service tax on air travel proposed in the Union Budget.

Forex Top Story

USDCAD USDEUR USDGBP USDJPY

Dollar On The Ropes, Hits Yearly Low Versus Sterling  The dollar fell to its lowest in more than a year versus the sterling Tuesday morning in New York, as Federal Reserve Chairman Ben Bernanke prepared to offer Congress his view on monetary policy and the economic outlook. Bernanke and most of his voting colleagues on the Fed have defended their $600 billion bond buying program and zero interest rate policy, even as inflationary pressures appear to be picking up. On the other hand, European policy makers have expressed concerns about rising prices, and are expected to soon raise interest rates in accordance with their singular focus on price stability. The dollar dropped to $1.6328 versus the sterling, its lowest since last January. Choppy trading overnight left the dollar at $1.3815 versus the euro, two days before the latest announcement on interest rates from the European Central Bank. There was no relief for the dollar against Canada's loonie, following yesterday's surprisingly strong Canadian GDP figures. The buck dropped to a near 3-year low of C$0.9698. The dollar was stuck near Y82 versus the yen, not far from November's 15-year low of Y80.22. In economic news, operating conditions across German manufacturing sector improved at the sharpest rate in survey history in February, final data from Markit Economics showed Tuesday. The seasonally adjusted Markit/BME manufacturing purchasing managers' indexadvanced to a record- high of 62.7 during the month from 60.5 in January. Eurozone inflation edged up to 2.4% in February from 2.3% in January, flash estimate from the European Union statistical agency Eurostat showed Tuesday. That matched economists' expectations. The unemployment rate in Japan was steady at a seasonally adjusted 4.9 percent in January, the Ministry of Internal Affairs and Communications said on Tuesday, unchanged from the previous month and matching forecasts. From the U.S., the results of the manufacturing survey of the Institute for Supply Management are due out at 10.00 a.m. ET. Economists expect the index to show a reading of 60.5 for February. At 10.00 a.m. ET, the Commerce Department is scheduled to release its report on construction spending for January. Economists expect the report to show a 0.8 percent decline in spending for January. Canadian Market Reports CADUSD Oil Gold Allbanc TSX May Open Higher; BoC Holds Rates Steady Toronto stocks may extend gains Tuesday amid positive cues from the global equity markets and firm commodities prices. Meanwhile, the Bank of Canada today left its key rates unchanged at 1 percent, as widely expected, and noted that the recovery in Canada is proceeding slightly faster than expected, and there is more evidence of the anticipated re-balancing of demand. Yesterday's data from Statistics Canada revealed the nation's economy grew at a faster-than-expected 3.3 percent in the fourth quarter 2010. Earlier today, the Canadian dollar advanced to 97 cents per U.S. dollar, levels not seen since late 2007. U.S. stock futures were pointing to a higher open. On Monday, the S&P/TSX Composite Index rose to a fresh 30-month peak of 14,136.50, adding 84.37 points or 0.60 percent. The price of crude oil edged up as the U.S. dollar continued to trade weak ahead of a key testimony from Federal Reserve Chairman Ben Bernanke. Crude for April was up $0.83 to $97.80 a barrel. The price of gold moved up to $1,420 on safe haven buying, with gold for April gaining $10.80 to $1,420.70 an ounce. In corporate news from Canada, Bank of Montreal said its first-quarter net income grew to C$776 million or C$1.30 per share from C$657 million or C$1.12 per share a year ago. The lender announced a second-quarter 2011 dividend of C$0.70 per common share, unchanged from the preceding quarter. Highway traffic management technology company International Road Dynamicsslipped in to the red in fourth quarter, reporting net loss of C$0.33 million or C$0.03 per share, compared to net profit of C$0.33 million or C$0.03 per share a year ago. Gold miner Osisko Mining reported a narrower fourth quarter net loss of C$1.2 million or breakeven per share, compared to a loss of C$8.4 million or C$0.03 per share a year earlier. Information solutions provider MacDonald Dettwiler slipped in to the red in fourth quarter, reporting net loss of C$54.2 million or C$1.32 per share, compared to net income of C$30.2 million or C$0.74 per share in the fourth quarter of previous year. However, net earnings from continuing operations was C$5.9 million compared to C$21.5 million in the comparable quarter a year ago. Elsewhere, China said its manufacturing output continued to expand in February but moderated from the previous month. The Purchasing Managers' Index fell to 52.2 last month from 52.9 in January, the China Federation of Logistics and Purchasing said. Meanwhile, the HSBC China Manufacturing PMI, fell to a seven-month low of 51.7 in February from 54.5 in January.