BlackRock Inc agreed to buy BGI, the investment arm of British bank Barclays. The $13.5B deal will make BlackRock the world's biggest money manager.

National Semiconductor Corp reported a loss of $63.7M, or 28 cents a share, on revenue of $281M.

Yahoo! Inc’s board named Tim Morse CFO. He will be responsible for Yahoo's finance, investor relations, and mergers and acquisitions groups. Morse was formerly a CFO at semiconductor company Altera Corp.

EUR/USD holds $1.4030 area after it earlier fell to $1.3935. Trader argue that euro remains in a slight uptrend, or at least will do if it can hold a close above $1.3968.

Participants appear content to keep stocks restricted to their recent trading ranges. As such, the major indices are moving sideways in early afternoon action; the S&P 500 is right in the middle of the range.
The sideways action comes amid a lack of positive leadership. One of the market's recent, primary leaders, materials stocks (-1.9%), are grappling with selling pressure as basic commodities get knocked around by a resurgent U.S. dollar. The weakness among commodities is easily visible among oil prices, which are currently down 1.0% to $71.90 per barrel. That has put a damper on the energy sector, which is down 1.5% this session after climbing more than 3% in the previous four sessions.

The dollar advanced against the euro and the yen after Japanese Finance Minister Kaoru Yosano said his nation’s confidence in U.S. debt is “unshakable” and that the currency’s global status is safe.
The Canadian dollar and Norwegian krone declined versus the greenback after crude oil dropped from a seven-month high.
Bank of Canada Governor Mark Carney repeated yesterday that he’ll keep interest rates low until the middle of 2010, and that the Canadian dollar’s appreciation could impede growth in the world’s eighth-largest economy. The currency has gained 13% over the past three months. Oil is the biggest export of Canada and Norway.
The dollar also pared a weekly decline after the Wall Street Journal reported the Federal Reserve will resist pressure to increase bond purchases, avoiding adding to the supply of the currency.
The Dollar Index has lost 9% in the past three months amid concern the Fed’s purchase of government bonds will flood the market with dollars.
The yen declined against higher-yielding currencies this week as a rise in industrial output in China added signs that the global economy is recovering, spurring demand for riskier assets.
The Australian and New Zealand dollars and the British pound gained the most against the yen among the Japanese currency’s 16 most-traded peers, rising at least 1.4%.

EUR/JPY rebounds off morning lows at Y136.85 area with the pair almost reaching Y137.90 before stalling to the current Y137.75. Offers remain in place around Y138.30 area of overnight highs.

EUR/USD rebounds to $1.4040, bringing earlier mentioned offers into contention. Talk of stops emerging above $1.4050.

Stocks are on the backslide after putting together a nice rebound. Trading within the benchmark S&P 500 is now mixed as half of the major sectors trade with gains.
Defensive-oriented stocks dominate the line up of advancing sectors. As such, health care is up 1.0%, telecom is up 0.6%, utilities are up 0.4%, consumer staples are up 0.2%.
Financial stocks are also making gains, though. The sector is up 0.2% as diversified banks (+0.8%) and diversified financial services stocks (+2.3%) provide leadership to the sector.
Blackrock is a laggard in the sector, however.

EUR/GBP finally made the break below stg0.8500 area that has supported in recent days, the pair lurching to lows around stg0.8483. Rate currently holds below stg0.8500.

"Perhaps the latest rise in gasoline prices is now beginning to bite, a bit earlier and a bit harder than we expected? Either way, sentiment remains soft and consistent with only very modest spending gains."

The stock market is trading with a sizable loss in the opening minutes. Declines are steepest among energy and materials stocks, which are both down 1.5%.
Weakness in the two sectors is underpinned by a drop in oil prices and other basic commodity prices, which has occurred in the wake of a rebounding U.S. dollar. With the greenback up 1.0% against a basket of major foreign currencies, the CRB Commodity Index is down 0.6%. Week-to-date, the Dollar Index is down 0.4%, but the CRB Index is up 2.5%.

- Reuters/Univ Michigan Mid-Jun Expectations 65.4; May 69.4
- Reuters/U Michigan 12-Mo Inflation Forecast +3.1%; May +2.8%
- Reuters/U Michigan 5-Yr Inflation Forecast +3.1%; May +2.9%

Rejection from 1.4130 intra-day high has extended to levels below 1.4000 and the Euro has dipped to levels right above yesterday's low 1.3945, giving away all gains posted ever since. At the moment, the Euro trades at 1.3970; 0.90% below its opening level.

U.S. stocks were set for a cautious start Friday as investors moved to the sidelines after pushing Wall Street to multi-month highs the previous session. Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.Hopes that the economic recovery is underway lifted U.S. stocks Thursday. The blue-chip Dow closed at its highest level since January.But investors remain on edge, which has led to volatile trading in the past week.

- US May Petroleum Import Prices +8.3%
- US Import Price Rise Highest Since July '08

Data:
06:00 Germany Wholesale prices (May) Y/Y -8.9%
06:45 France HICP (April) Y/Y -0.3%
06:45 France CPI (April) unadjusted Y/Y -0.3%
06:45 France CPI (April) unadjusted 0.2%
09:00 EU(16) Industrial production (April) Y/Y -21.6%
09:00 EU(16) Industrial production (April) -1.9%

The dollar advanced against the euro and the yen before a Group of Eight meeting of finance ministers at which Treasury Secretary Timothy Geithner may say the U.S. favors a strong dollar.
The U.S. currency pared a weekly decline after the Wall Street Journal reported the Federal Reserve will resist pressure to increase bond purchases, avoiding adding to the supply of dollars. The pound declined against the euro, eroding the biggest weekly gain since the five days ending Jan. 30 as bank stocks fell for the first time in three days.
European industrial production dropped by the most on record in April as the worldwide recession ravaged demand for goods.
Production in the euro region plunged 21.6 percent from a year earlier, the most since the data series started in 1986, the European Union’s statistics office in Luxembourg said today. Economists expected a 19.8 percent decline, according to the median of estimates. From March, output declined 1.9 percent.

EUR/USD the pair remained under pressure therefore decreased below a mark $1,4000

- May OEPC production +135k/bpd to avg 28.27m/bpd

The dollar advanced against the euro and the yen before a Group of Eight meeting of finance ministers at which Treasury Secretary Timothy Geithner may say the U.S. favors a strong dollar.
The U.S. currency pared a weekly decline after the Wall Street Journal reported the Federal Reserve will resist pressure to increase bond purchases, avoiding adding to the supply of dollars. The pound declined against the euro, eroding the biggest weekly gain since the five days ending Jan. 30 as bank stocks fell for the first time in three days.
“There might be some comments about the dollar from Geithner and on the strength of the euro from European officials, that it’s not a great development for Europe,” said Henrik Gullberg, a foreign-exchange strategist at Deutsche Bank AG in London. “There’s also a bit of profit taking as the market isn’t willing to push euro-dollar much above current levels.”
European industrial production dropped by the most on record in April as the worldwide recession ravaged demand for goods.
Production in the euro region plunged 21.6 percent from a year earlier, the most since the data series started in 1986, the European Union’s statistics office in Luxembourg said today. Economists expected a 19.8 percent decline, according to the median of estimates. From March, output declined 1.9 percent.

Resistance 3: Y99.60
Resistance 2: Y98.90
Resistance 1: Y98.20
Current price: Y98.20
Support 1: Y97.10
Support 2: Y96.60
Support 3: Y95.30
COMMENTS: The pair continues to become stronger. Break above Y98.20 (area of consolidation of hour lows June 8 and session high) to open the way to Y98.90 (high of June). Above the important level is the area of May top Y99.60/80. The nearest support comes around Y97.10 (yesterday's low), ahead of Y96.60 (area of June 5 low and 2 high) and Y95.30.

Resistance 3: Chf1.0980
Resistance 2: Chf1.0860
Resistance 1:Chf1.0750
Current price: Chf 1.0763
Support 1: Chf1.0650
Support 2: Chf1.0580
Support 3: Chf1.0540
COMMENTS: The pair tests resistance in the field of Chf1.0750 (June 10 low). Ahead of further upside target around Chf1.0850 (yesterday's high). Monday’s highs are the key resistance at Chf1.0980. Support comes at Chf1.0650 (Jun 11 low). Next band of support is near Chf1.0580/90 (Jun 02 lows), ahead of daily Bollinger base at Chf1.0540.

Resistance 3:$1.6860
Resistance 2:$1.6660
Resistance 1: $1.6620
Current price: $1.6434
Support 1: $1.6340
Support 2: $1.6240
Support 3: $1.6100
COMMENTS: The pound also is corrected against dollar. The nearest support - on $1.6340 (earlier resistance, area of session low), further - $1.6240 (yesterday's low). Below the area of Monday's high on $1.6100 is located. The nearest resistance is June 11 high on $1.6620. Break above will open the way to June 03 high on $1.6660.

Resistance 3:$1.4330
Resistance 2:$1.4270
Resistance 1:$1.4150
Current price: $1.4050
Support 1:$1.3910
Support 2:$1.3850
Support 3:$1.3780
COMMENTS: The euro continues to be corrected. The nearest support - $1.3910 (Junr 10 low), below - $1.3850 (Tuesday's low). The strong level is located on $1.3780 (38,2% FIBO of $1,2880-$ 1,4330). The nearest resistance $1.4150/70 (yesterday's high). ahead of $1.4270. Stronger level is June 03 high on $1.4330.

EUR/USD
Offers $1.4180, $1.4150, $1.4125/30, $1.4100, $1.4080/85
Bids $1.4053/50, $1.4015/10, $1.4000/980

EUR/USD $1.4125/30, $1.4000, $1.3975, $1.4300
USD/JPY Y98.00, Y98.20, Y97.10/00
GBP/USD $1.6600, $1.6650
AUD/USD $0.8120
USD/CAD C$1.1050, C$1.1000, C$1.0995, C$1.1160, C$1.1190

Data:
00:01 G8 Meeting
04:30 Japan Industrial output (April) final Y/Y -30.7% -31.2%
04:30 Japan Industrial output (April) final 5.9% 5.2%
06:00 Germany Wholesale prices (May) Y/Y -8.9% -9.0% -8.1%
06:45 France HICP (April) Y/Y -0.3% -0.2% 0.1%
Edit
06:45 France CPI (April) unadjusted Y/Y -0.3% -0.2% 0.1%
06:45 France CPI (April) unadjusted 0.2% 0.2% 0.2%

The dollar declined against higher- yielding currencies as speculation the global recession is easing prompted investors to buy riskier assets.
The New Zealand and Australian dollars gained the most of the 16 most-active currencies after New Zealand’s central bank left interest rates unchanged for the first time in a year and Australia reported a smaller-than-expected drop in jobs. The euro rose against the dollar on speculation European Central Bank officials will signal a reluctance to cut interest rates, maintaining the currency’s appeal.
The Federal Reserve said yesterday the U.S. recession may be slowing in almost half of its regions and the outlook at some companies is improving. Five of 12 Fed districts “noted that the downward trend is showing signs of moderating,” the Fed said in its Beige Book business survey.
The New Zealand dollar strengthened the most in almost two weeks versus the greenback after the central bank said the country’s worst recession in at least three decades may be nearing the end.
U.S. retail sales probably increased in May for the first time in three months, according to the median forecast of economists surveyed byBloomberg News before the Commerce Department releases the report today.
The Australian dollar reached the highest level in eight months against the yen after the statistics bureau said the number of people employed in the nation fell 1,700 in May from the previous month. The median estimate of analysts was for a 30,000 decline.

EUR/USD started the day at $1.4130, before eased ahead of European session to $1.4050.

The Nikkei 225 was higher by 154.49 points, or 1.55%, to stand at 10,135.82.

Majors close

Nikkei -10.16 -0.10% 9,981
Topix + 3.64 +0.38% 940.65
FTSE +25.12 +0.57% 4,462
CAC +19.67 +0.59% 3,335
Dax +56.08 +1.11% 5,107
Dow +31.90 +0.37% 8,770.92
NASDAQ +9.29 +0.50% 1,862.3
S&P +5.74 +0.61% 944.89
10yr Note 93 27/32 +18/32 3.87%

NYMEX Crude Oil +1.35 +1.89% 72.68
Gold +6.80 +0.71% 961.50

The Australian dollar advanced on Thursday as improving risk appetite boosted demand for high-yielding assets. Analysts said increasing confidence that the global slowdown might be stabilising had prompted investors to sell the US dollar to fund the purchase of higher-yielding and commodity-linked currencies.
Analysts said that the improvement in sentiment had been prompted by leaked Chinese economic data that revealed a better than expected 8.9% rise in industrial production in May, and also by confirmation from the US Treasury that 10 banks have been approved to repay a total of $68bn in funds from the troubled asset relied programme.
The dollar had fallen 0.7% against the Australian dollar and 0.6% against the New Zealand dollar.
The US dollar also dropped 0.4% against the pound, which benefited as figures showed UK industrial production recorded its first rise in 14 months in April.
The dollar and yen declined against most of their major counterparts after a gain in U.S. retail sales and a drop in initial jobless claims encouraged investors to buy higher-yielding assets. The New Zealand and Australian dollars were the biggest winners versus the greenback and yen among the most-traded currencies as New Zealand’s Reserve Bank left the official cash rate unchanged for the first time in a year and Australia lost fewer jobs than forecast. The pound rose to a six-month high versus the euro on the prospects for a U.K. economic rebound. “Risk tolerance is returning,” said Lane Newman, director of currency trading at ING Financial Markets LLC in New York. “The yen is weak.”
The dollar declined 0.7 percent to $1.4075 per euro in New York, from $1.3984 yesterday. The euro rose 0.3 percent to 137.60 yen from 137.21. The U.S. currency depreciated 0.4 percent to 97.76 yen from 98.12.
Sterling climbed as much as 0.6 percent to 85.01 pence per euro, the strongest level since Dec. 2, as Andrew Sentance, a Bank of England policy maker, said in a speech yesterday in Aberdeen, Scotland, that the recession in the U.K. may be “bottoming out.” The pound rose for a fourth day against the dollar, appreciating 1.1 percent to $1.6542.
European data for Friday starts at 0600GMT with wholesale prices from Germany, while there is a raft of French data at 0645GMT, which includes central government deficit data, the April current account balance and also May HICP, CPI. At 0900GMT, EMU April industrial production data is expected to contract further, by a reading of -0.5% m/m, -20.1% y/y. At 1130GMT, ECB President Jean-Claude Trichet gives a speech at the University of Sofia in Bulgaria. At 1530GMT, ECB President Jean-Claude Trichet gives another speech in Sofia, this time at the Bulgarian National Bank. Remember, it is also the G8 finance ministers meeting into this weekend.
US data starts at 1230GMT with the Import/Export Price Index, while at 1355GMT, the University of Michigan Consumer Sentiment Index is expected to rise to 70.0 in early-June on the heels of a three straight gains.

Stagnation in the US and Asian markets is offering little push initially, and traders await US confidence data out later for possible direction. Spreadbetters have the FTSE-100 down 3pts, CAC-40 down 8pts, and Xetra-DAX down 8pts.

May HICP +0.1% m/m, -0.3% y/y after April +0.1%/+0.1%
Jan-Apr central govt deficit E71.9 bln, +E26.9 bln y/y
April sa current account deficit narrows to E3.1 bln from -E3.2 bln in March (revised from -E2.2 bln)

Resistance 3: Y99.60
Resistance 2: Y98.90
Resistance 1: Y98.20
Current price: Y97.93
Support 1: Y97.10
Support 2: Y96.60
Support 3: Y95.30
COMMENTS: The nearest support comes around Y97.10 (yesterday's low), ahead of Y96.60 (area of June 5 low and 2 high) and Y95.30. Break above Y98.20 (area of consolidation of hour lows June 8 and session high) to open the way to Y98.90 (high of June). Above the important level is the area of May top Y99.60/80.

Resistance 3: Chf1.0980
Resistance 2: Chf1.0860
Resistance 1:Chf1.0750
Current price: Chf 1.0733
Support 1: Chf1.0650
Support 2: Chf1.0580
Support 3: Chf1.0540
COMMENTS: Dollar tries to bounce back. Support comes at Chf1.0650 (Jun 11 low). Next band of support is near Chf1.0580/90 (Jun 02 lows), ahead of daily Bollinger base at Chf1.0540. Resistance comes at Chf1.0750, ahead of further upside target around Chf1.0850 (yesterday's high). Monday’s highs are the key resistance at Chf1.0980.

Resistance 3:$1.6860
Resistance 2:$1.6660
Resistance 1: $1.6620
Current price: $1.6537
Support 1: $1.6340
Support 2: $1.6240
Support 3: $1.6100
COMMENTS: The nearest resustance is June 11 high on $1.6620. Break above will open the way to June 03 high on $1.6660. The nearest support - on $1.6340 (earlier resistance, area of session low), further - $1.6240 (yesterday's low). Below the area of Monday's high on $1.6100 is located.

Resistance 3:$1.4330
Resistance 2:$1.4270
Resistance 1:$1.4150
Current price: $1.4093
Support 1:$1.3910
Support 2:$1.3850
Support 3:$1.3780
COMMENTS: The euro corrected after yesterday's decrease. The nearest resistance $1.4150/70 (yesterday's high). ahead of $1.4270. Stronger level is June 03 high on $1.4330. The nearest support - $1.3910 (Junr 10 low), below - $1.3850 (Tuesday's low). The strong level is located on $1.3780 (38,2% FIBO of $1,2880-$ 1,4330).

Spreadbetters Cantor Index are calling the FTSE up 1, the DAX down 23, the CAC down 15 and the Eurostoxx 50 down 8.

High Low Close
EUR/USD 1.4176 1.3941 1.4095
GBP/USD 1.6620 1.6338 1.6572
USD/JPY 98.55 97.27 97.72
USD/CHF 1.0838 1.0648 1.0711

EUR/JPY 137.98 136.55 137.73
EUR/GBP 0.8562 0.8499 0.8502
GBP/JPY 162.09 159.91 161.94
GBP/CHF 1.7793 1.7642 1.7749

Change % Change Last

Nikkei -10.16 -0.10% 9,981
Topix + 3.64 +0.38% 940.65
FTSE +25.12 +0.57% 4,462
CAC +19.67 +0.59% 3,335
Dax +56.08 +1.11% 5,107
Dow +31.90 +0.37% 8,770.92
NASDAQ +9.29 +0.50% 1,862.3
S&P +5.74 +0.61% 944.89
10yr Note 93 27/32 +18/32 3.87%

NYMEX Crude Oil +1.35 +1.89% 72.68
Gold +6.80 +0.71% 961.50

04:30 Japan Industrial output (April) final - 5.2%
04:30 Japan Industrial output (April) final Y/Y - -31.2%
06:00 Germany Wholesale prices (May) 0.1% 0.1%
06:00 Germany Wholesale prices (May) Y/Y -9.0% -8.1%
06:45 France CPI (April) unadjusted 0.2% 0.2%
06:45 France CPI (April) unadjusted Y/Y -0.2% 0.1%
06:45 France HICP (April) Y/Y -0.2% 0.1%
09:00 EU(16) Industrial production (April) -0.4% -2.0%
09:00 EU(16) Industrial production (April) Y/Y -19.0% -20.2%
12:30 USA Import prices (May) - 1.6%
12:30 USA Export prices (May) - 0.5%
13:55 USA Michigan sentiment index (June) preliminary 68.6 68.7