WORLD MARKET UPDATES

US Market Reports

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After showing a strong upward move over the course of the previous session, stocksare seeing some further upside in early trading on Thursday. The major averages have moved modestly higher, although buying interest seems somewhat subdued. The major averages are currently hovering in positive territory, holding onto modest gains. The Dow is up 49.94 points or 0.4 percent at 12,610.13, the Nasdaq is up 8.09 points or 0.3 percent at 2,832.09 and the S&P 500 is up 3.86 points or 0.3 percent at 1,344.54. The early strength on Wall Street is partly due to the release of a report from the Labor Department showing a bigger than expected drop in weekly jobless claims. The report showed that jobless claims fell by 29,000 to 409,000 from the previous week's revised figure of 438,000. Economists had expected jobless claims to edge down to 425,000 from the 434,000 originally reported for the previous week. Despite the bigger than expected drop, however, jobless claims remained above the 400,000 level for the sixth straight week and the four-week moving average inched up to 439,000, its highest level since November of 2010. Peter Boockvar, equity strategist at Miller Tabak, said, "Bottom line and sounding like a broken record (yes the old vinyl on a turntable), the labor market is still adding jobs but the pace is still lackluster in the context of historical recoveries and especially after so many jobs were lost in the recession." Transportation stocks have shown a notable move to the upside in early trading, withCon-way (CNW) helped to lead the sector higher after Stifel Nicolaus raised its rating on the trucking company to Buy from Hold. Tobacco, defense, and housing stocks are also seeing early strength.  Meanwhile, semiconductor stocks have come under pressure amid negative comments from Goldman Sachs, which downgraded Intel (INTC) to Sell from Neutral due to concerns about slowing processor shipments and increased competition from tablet computers. On the earnings front, shares of Sears Holdings (SHLD) have come under pressure after the company reported an adjusted first quarter loss of $1.39 per share, wider than analyst estimates for a loss of $1.22 per share. Sears is currently down by 3.9 percent after hitting a four-month intraday low. Sears President and CEO Lou D'Ambrosio said that the company's results for the quarter reflected the adverse effects of unfavorable weather, economic pressures, and comparisons to last year's government-sponsored stimulus program relating to the purchase of appliances.

European Market Reports

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European Markets Advance Amid Positive Earnings News The European markets are moderately to notably up in afternoon trading Thursday, amid some positive earnings news as well as consolidation in commodities prices.Lenders and automakers are higher. Airline stocks are seeing upside after Air France-KLM reported encouraging results. The Euro Stoxx 50 index of eurozone blue chippers is adding 1.16 percent, while theStoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.97 percent. The German DAX is advancing 1.24 percent and the French CAC 40 is rising 1.22 percent. The UK's FTSE 100 is rising 0.98 percent and Switzerland's SMI is climbing 0.32 percent. Among the DAX components, automaker Volkswagen is rising 1 percent. Daimler,BMW and MAN are adding between 0.4 percent and 0.25 percent. Commerzbank is adding 1.8 percent and Deutsche Bank is gaining 0.4 percent. Those making notable gains include HeidelbergCement, ThyssenKrupp andLufthansa. Merck is falling 2.4 percent after JPMorgan cut its rating on the stock to "Underweight" from "Neutral" and lowered the price target to 67 euros from 63 euros. In Paris, insurer Axa is advancing 2.8 percent. Lenders Natixis, BNP Paribas, Credit Agricole and Societe Generale are gaining between 2.4 percent and 1.6 percent. Unicredit raised drugmaker Sanofi-Aventis to "Hold" from "Sell" and increased its price target to 56 euros from 48.50 euros. Sanofi is up 1.6 percent. Air France-KLM is up over 2 percent after it swung to a full-year profit. Investec is adding about 6 percent in London after the specialist bank reported a rise in full year profit. Barclays is adding 3.3 percent, while Royal Bank of Scotland andStandard Chartered are up 1.7 percent each. International Consolidated Airlines is rising 1.5 percent. Invensys is declining 3.7 percent. The engineering group posted higher profit for the year, but reported fewer large orders in Invensys Rail. Swiss luxury goods group Compagnie Financière Richemont is falling 2.3 percent in Zurich, despite reporting a sharp increase in fiscal 2011 profit. In economic news, U.K. retail sales, including automotive fuel, grew 1.1 percent month-on-month in April, data from the Office for National Statistics showed. Economists were expecting a 0.8 percent rise. On a yearly basis, all retailing including automotive fuel grew 2.8 percent in April, faster than the 2.5 percent growth forecast by economists. Moody's Investors Service downgraded the long-term ratings and financial strength ratings of Danish lenders Jyske Bank A/S, Sydbank A/S, Spar Nord Bank A/S,Ringkjobing Landbobank A/S, and BankNordik P/F, while slashing the long-term rating of Danske Bank A/S. Meanwhile, Dominique Strauss-Kahn resigned late Wednesday as the Managing Director of the International Monetary Fund four days after his arrest over allegations of sexually assaulting a hotel maid in Manhattan late last week. In Asia/Pacific, Australia's All Ordinaries added 1.32 percent and Hong Kong's Hang Seng gained 0.66 percent. China's Shanghai Composite Index and Japan's Nikkei 225 declined 0.45 percent and 0.43 percent, respectively. In the U.S., futures point to a higher open on Wall Street. In the previous session, the major averages closed firmly in positive territory, near their best levels of the day. TheDow advanced 0.7 percent, the Nasdaq jumped 1.1 percent and the S&P 500 climbed 0.9 percent. In the commodity space, crude for June delivery is adding $0.38 to $100.48 per barrel and gold is dropping $2.4 to $1493.4 a troy ounce.

Asia Market Reports

Nikkei 225 Hang Seng Bse Sensex S&P/ASX 20 Please click on the images to view our interactive charts

Asian Stocks End Mixed; Japan Economy Contracts Asian stocks ended mixed Thursday as Japanese stocks hurt by poor GDP numbers, while those in Australia moved higher amid a rebound in commodities. Meanwhile, the Chinese market ended lower. In early trading, investors were encouraged by an overnight jump in Wall Street after theU.S. Federal Reserve's minutes indicated that the policy makers will continue to support the economy and in no hurry to tighten monetary policy. Japanese investors dumped stocks after data revealed that the March 11 earthquake and tsunami took a heavy toll on the nation's economy. Japan's gross domestic product contracted an annualized 3.7 percent in the first quarter of 2011, belying economists expectations for a 2.0 percent drop. The benchmark Nikkei 225 Average shed 41.26 points or 0.43 percent to 9620.82. and the broader Topix index of all First Section issues was down 6.07 points or 0.72 percent to 831.89. Nuclear power plant operator Tokyo Electric Power Co., lost 8 percent. Japan's biggest steelmaker Nippon Steel Corp. ended lower after it said it posted a worse-than-expected loss in the recent quarter. Chinese stocks ended lower amid concerns over further monetary tightening measures, with the benchmark Shanghai Composite Index losing 13.03 points or 0.45 percent to 2,859.74. China's largest power group Huaneng Power International slid nearly 3 percent. Elsewhere, South Korean stocks edged lower amid selling in technology stocks. TheKOSPI shed 40.27 points or 1.89 percent, to 2,095.51. Hynix Semiconductor was down close to 4 percent and LG Electronics dropped over 2 percent. Meanwhile, the Hong Kong market ended higher amid a rebound in property shares. Hong Kong's Hang Seng index added 152.24 points or 0.66 percent to 23,163.38. China Overseas Land & Investment Ltd. rose close to 4 percent and China Resources Land was up over 2 percent. Stocks in New Zealand edged up, helping the benchmark NZX-50 add 9.44 points to 3,569.00, its highest level since June 2008. Coal miner Bathurst Resources rose over 4 percent, while Telecom Corp, the country's biggest phone company, eased nearly 2 percent. Elsewhere, Australian stocks moved higher amid buying in resource stocks as commodities rebounded from recent slump. The benchmark S&P/ASX200 index gained 62.70 points to 4,756.40 and the broader All Ordinaries index was up 62.90 points to 4,828.20. The world's largest miner BHP Billiton rose over 1 percent and Energy Resources of Australia Ltd. gained over 2 percent. Meanwhile, markets in Malaysia, Singapore and India ended marginally higher.

Forex Top Story

USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts

Dollar Showing Signs Of Strain Ahead Of Data Deluge The dollar was mixed Thursday morning in New York, as the markets braced for flurry of U.S. economic news, including the latest from the jobs sector. Attention remains focused on Europe, where Greece announced it will double the size of additional spending cuts planned for this year, as it attempts to attract aid from its neighbors. About a year after its first rescue package was worked out, Greece is once again tapping its neighbors and the International Monetary Fund to avoid having to restructure its sovereign debt. The IMF has confirmed that Dominique Strauss-Kahn has resigned from the post of managing director. Strauss-Kahn is in a New York City jail, charged with sex crimes. The dollar was slightly weaker versus the euro this morning, holding near $1.43. Earlier this week the dollar reached a 7-week high of $1.4047. However, with the Federal Reserve confirming it will take its time in scaling back accommodative monetary policy, the buck is likely to drift back toward a recent 17-month low near $1.50. The Fed had "extensive discussion" on its exit strategy from its ultra-accommodative monetary policy, the minutes of the central bank's latest rate-setting meeting revealed Wednesday. Still, the central bank said it plans to tighten monetary policy very gradually and offered no specific timeline. The dollar softened a bit versus the sterling, easing to $1.62 after better than expected U.K. retail sales figures. U.K. retail sales, including automotive fuel, grew 1.1 percent month-on-month in April, data from the Office for National Statistics showed Thursday. Economists were expecting a 0.8 percent increase for the month. The dollar also gave back some of its recent gains versus its Canadian counterpart, slipping to C$0.9670. On the flip side, the dollar gained on the yen, rising to a 3-week high of Y81.95. Looking ahead, the U.S. Labor Department will release its weekly jobless claims report at 8:30 am ET. Economists expect claims to decline further to 425,000 in the week ended May 14. Also on tap is the National Association of Realtors' existing home sales report for April. The report is due at 10 am ET. The consensus estimates call for a small increase in sales to a seasonally adjusted annual rate of 5.20 million units following a modest increase in the previous month. The results of the Philadelphia Federal Reserve's regional manufacturing survey due out also at 10 am ET is expected to show that manufacturing conditions in the region improved in May. The business conditions index based on the survey is expected to have increased to 23 from 18.5 in April, when it fell a steep 24.9 points. Also due at 10 am ET is the Conference Board's leading economic indicators index for April. Economists expect an unchanged reading in April following a 0.4 percent month-over-month increase in March. Canadian Market Reports CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts Early Signals Point To Positive Open For TSX Toronto stocks may open higher Thursday amid firm commodities and mixed cues from the global equity markets. Traders will also react to the recent batch of corporate earnings reports that came in mixed. Commodities were steady after the U.S. Federal Reserve's minutes indicated that the policy makers will continue to support the economy and in no hurry to tighten monetary policy. Asian markets ended mixed as Japanese investors dumped stocks after data revealed that the March 11 earthquake and tsunami took a heavy toll on the nation's economy.Japan's gross domestic product contracted an annualized 3.7 percent in the first quarter of 2011, belying economists expectations for a 2.0 percent drop. Meanwhile,European stocks were trading higher on support from commodities stocks. U.S. stock futures were pointing to a higher open amid weekly jobless claims data. On Wednesday, the S&P/TSX Composite Index surged to a weekly high, adding 166.19 points or 1.24 percent to 13607.25. The price of crude oil was steady above $100 after official data revealed crude inventories were unchanged last week. Crude for June was flat at $100.10 a barrel Gold for June slipped $6.80 to $1,489.00 an ounce. In corporate news from Canada, Colombia focused oil and gas firm Pacific Rubiales Energy (PRE.TO) slipped in to red in first quarter, reporting net loss of $69.59 million or $0.26 per share compared to a profit of $76.13 million or $0.30 per share in the prior year quarter. Oil and gas exploration company Angle Energy (NGL.TO) reported improved first quarter funds from operations of $22.99 million or $0.31 per share, compared to $12.47 million or $0.22 per share in the previous year quarter. Drilling services provider PHX Energy Services (PHX.TO) reported that its first-quarter funds from operations rose to C$9.09 million or C$0.32 per share, from C$5.72 million or C$0.21 per share in the same quarter last year. Silver mining company Pan American Silver (PAA.TO) reported a much improved first quarter net earnings of $92.7 million or $0.86 per share compared to $26.2 million or $0.25 per share a year ago. Retail and commercial properties focused trust Artis Real Estate Investment Trust (AX_UN.TO) reported that its first-quarter funds from operations rose to C$21.67 million or C$0.28 per unit from C$11.80 million or C$0.27 per unit in the year ago quarter. The company said it would be acquiring $189.0 million of properties in Canada and $53.3 million of properties in the US. The company also confirmed the closing of $60.3 million of previously announced Canadian office and industrial property acquisitions. Interactive white board maker Smart Technologies (SMA.TO) reported a decline in its fourth quarter profits to $7.6 million from $10.5 million in the year-ago period. Earnings per share were $0.06, flat with last year on a lower share count for the recent quarter. Analysts were expecting the company to report earnings of $0.08 per share this quarter. GPS products maker Hemisphere GPS (HEM.TO) swung to profit in first quarter, reporting net income of $1.85 million or $0.03 per share compared to a loss of $1.01 million or $0.02 last year. Closeout retail stores operator Liquidation World (LQW.TO) reported a wider second quarter net loss of C$14.0 million or C$0.47 per share compared with a net loss of C$2.9 million or C$0.18 per share in the prior year quarter. In economic news from south of the border, the U.S. Labor Department said new applications for unemployment insurance fell 29,000 to 409,000. Economists were expecting the claims to come in at 425,000. Elsewhere, total retail sales in UK, including automotive fuel, grew 1.1 percent month-on-month in April, after an upwardly revised 0.3 percent increase in March, data from theOffice for National Statistics showed today. The retail sales growth for March was initially estimated at 0.2 percent. Economists were expecting a 0.8 percent increase for April.