The search giant Google Inc reported a 30% jump in quarterly profit late Thursday and a rise in paid clicks, quieting fears of slowing growth.
The maker of a machine for robot-assisted surgery Intuitive Surgical Inc said stock compensation costs may increase in 2008 as expenses for stock options double from last year to $75 million.
The world's largest broker of exchange-traded derivatives Mf Global Ltd said fiscal fourth-quarter revenue increased at least 17%.
The biggest maker of digital-camera memory cards SanDisk Corporation posted a first-quarter profit, rebounding from a loss a year earlier, because of sales of consumer-electronics gadgets.
The world's largest billing and customer-service software company Amdocs Ltd said second-quarter profit rose 15% as telephone and cable companies ordered software to support advanced services.
The heavy-equipment maker Caterpillar Inc posted a better-than-expected gain in earnings, as sales to China and India increased and a weak dollar helped overseas revenue.

Economist Joe Carson at Alliance-Bernstein says there are consistent cost pressures due to resilient mfg and good exports. He says high energy costs will constrain the consumer and does not expect much growth in Q1 but sees +2.2% for 2008 overall.

The stock market remains on track for a strong finish. Week-to-date the Dow Jones is up 4.5%, the Nasdaq is up 5.2%, and the S&P 500 is up 4.6%.

Year-to-date the major indices remain in negative territory. This year the Dow Jones is down 3.0%, while the Nasaq is down 9.1% and the S&P 500 is down 5.1% in 2008.

``Citi's report is a bit of a relief in the sense that things are not getting worse,'' said Camilla Sutton, co-head of currency strategy at Scotia Capital Inc. in Toronto. ``Risk reduction is in favor of the dollar and against the yen.''

The dollar rose the most against the euro in more than two weeks after Citigroup Inc.'s first- quarter results fueled speculation that financial firms will weather credit market losses.
The yen fell versus all of the major currencies, dropping more than 2 percent against the South African rand and British pound, as investors increased purchases of higher-yielding assets funded in Japan. The dollar was headed for its biggest weekly advance against the yen since 1999 as yields on two-year Treasury notes reached a 2 1/2-month high. The yen fell 2.5 percent versus South Africa's rand and 2.2 percent against the pound as a gain in U.S. stocks encouraged investors to resume carry trades, in which they get funds in a country with low borrowing costs and invest where returns are higher. Japan's 0.5 percent target lending rate, the lowest among developed nations, compares with 11.5 percent in South Africa and 5 percent in the U.K.
First-quarter revenue at Citigroup plunged 48 percent to $13.2 billion, compared with the average estimate of $11.1 billion from analysts surveyed. The biggest U.S. bank by assets reported a $5.11 billion loss. The Standard & Poor's 500 Index added 1.7 percent.
The greenback is headed for a 0.4 percent increase against the euro this week after reaching the all-time low of $1.5983 yesterday. The dollar faces a weekly advance of 3.5 percent against the yen, the biggest gain since February 1999. The yen is down 3.2 percent against the euro this week, the largest drop since the week ended Aug. 24.
The pound appreciated 1.3 percent this week to within a cent of $2 on speculation the Bank of England may take mortgages off lenders' balance sheets. Sterling is up 1.9 percent this week per euro.
Futures on the Chicago Board of Trade show no chance the Fed will cut its 2.25 percent target rate for overnight lending between banks by a half-percentage point on April 30, down from 46 percent odds a week ago. There's a 90 percent likelihood of a quarter-point reduction and 10 percent odds of no cut.
The euro advanced earlier against the dollar after a government report showed German producer prices rose at the fastest pace in 15 months, adding to speculation the European Central Bank will keep its main refinancing rate at a six-year high of 4 percent.

European stocks rose the most in two weeks as results at companies from Citigroup Inc. to Google Inc. and Yara International ASA eased concern the slowing U.S. economy will derail sales and profit growth. Yara, the world's largest fertilizer maker, jumped 13 percent after earnings more than doubled. Societe Generale SA rallied to a two-month high as the French bank said first- quarter earnings will show ``resilience.'' TeliaSonera AB climbed after France Telecom SA said it's interested in the Swedish company.

"We believe the economy has slipped into a mild recession and expect the recovery to be feeble. Weak growth should tame inflation and keep the Fed cutting interest rates." - Lehman Brothers. And says - "Given our below-consensus (GDP) forecast, we expect the Fed to cut rates another 125bp while the consensus expectation is for rate hikes by early next year."

Stocks are trading sideways and holding on to the session's gains. Only the defensive-oriented utilities sector (-0.3%) is trading in negative territory.Google's (GOOG 536.57, +87.03) strength has the tech sector (+3.1%) outperforming the other major economic sectors. It has also helped the Nasdaq 100 gain 3.0% this session.
However, financials (+2.6%) are also showing considerable strength. The sector continues to trade higher as investors lift shares of Citigroup (C 25.65, +1.62). Citi posted a loss for its most recent quarter amid write-downs and valuation adjustments. The firm was also put on CreditWatch Negative by Standard & Poor's. Still, investors remain optimistic about Citi's future.

- Does not rule out interest rate rises
- March 3.6% inflation rate is very, very worrying
- Sees 2008 average inflation likely to be closer to 3.0% than 2.0%
- Sees average 2009 inflation above 2.0%, but closer to 2.0% than 3.0%
- ECB has no preconceived opinion, makes decision on latest data
- German wage deals are not a good example for others
- Markets have understood ECB's message well, analysts make up their own minds
- Sees somewhat weaker but ongoing economic growth, IMF too pessimistic.

Though each of the major indices are trading higher, the Nasdaq is outperforming its counterparts.Shares of Google are leading the index.Microsoft and Apple are also providing support to the Nasdaq. Each of the ten economic sectors are now in positive territory.Oil is roughly 1.0% lower this session, trading at $113.73 per barrel.

EUR/GBP challenges bids between the stg0.7880 zone amid euro’s slide and pound’s recovery. Offers stg0.7920/25.

EUR/USD rebounds off morning lows near $1.5705 and currently holds around $1.5731. Traders say the rebound off lows takes place amid intra-day short-covering.

EUR/USD: $1.5730
USD/JPY: Y102.50, Y102.00, Y103.75, Y101.35
AUS/USD: $0.9250
KIWI: $0.7870
USD/CAD: C$1.0180

USD/JPY prints high at Y104.43, flushing stops above Y104.25. Area of Y104.50 suggested to hold some supply with techs noting that is the level of the Ichimoku cloud top. Currently rate holds near Y104.14.

Stock futures rose early Friday after Internet giant Google defied the economic slowdown and posted a hefty quarterly profit.

Google reported a 30% jump in quarterly profit late Thursday. Google shares surged 18%.

Citigroup showed there was still more pain in financial sector, as the nation's largest bank reported a loss of $5.1 billion loss that was worse than expected as it announced another $12.1 billion in writedowns. But some traders were expecting even worst losses at Citi and shares of the Dow component rose 7%.

Caterpillar, another stock in the Dow 30, posted a better-than-expected gain in earnings. Its shares gained more than 4%.

Advance Micro Devices posted a net loss that was in line with analysts' forecasts.

Flash memory chip maker SanDisk reported weaker-than-expected earnings. Shares still gained 5% in after-hours trading as its revenue topped forecasts and it gave bullish sales guidance for the second quarter.

Oil prices retreated in early electronic trading as a barrel of light sweet crude lost 86 cents to $114.00.

1.Weakening industrial orders point to slowdown ahead
2.Growth, inflation risks have increased

GBP/USD eases below $1.9900, as rate tracks euro-dollar's extended corrective pullback, while euro-sterling remains buoyed by the area between stg0.7900/0.7890. Cable bids now seen placed between $1.9885/80. Break here to open a deeper move toward $1.9850.

The following data was released
06:00GermanyPPI (March) 0.7% 0.4% 0.7%
06:00GermanyPPI (March) Y/Y 4.2% 4.0% 3.8%
08:30UKM4 money supply (March) provisional 0.8% - 0.2%
08:30UKM4 money supply (March) provisional Y/Y 12.0% - 12.4%
08:30UKM4 lending (March) provisional, bln +17.7 - +17.6 (+17.4)
08:30UKPSNCR (March), bln 12.7 - 2.9

The dollar rose against the euro for a second day on growing speculation financial firms will weather the credit-market turmoil.
The U.S. currency also headed for its biggest weekly gain this year versus the yen after Citigroup Inc. reported first- quarter revenue that beat analysts' estimates.
The pound climbed to a two-week high against the dollar.
The euro advanced earlier after a government report showed German producer-prices rose at the fastest pace in 15 months, causing investors to add to bets that the European Central Bank will keep interest rates at a six-year high.

EUR/USD tested $1.5950 before falling on position-adjustment. After triggering some spots rate slid to $1.5754 lows.
GBP/USD failed to break above $2.0000 and retreated to $1.9925.
USD/JPY rose after morning consolidation between the Y102.20/50 zone. Rate printed high at Y104.20 before backed off to Y104.07.

There is no key economic data for today from US. Likely the market players will close the position before the week-ends.

EUR/USD: $1.5730
USD/JPY: Y102.50, Y102.00, Y103.75, Y101.35
AUS/USD: $0.9250
KIWI: $0.7870
USD/CAD: C$1.0180

The euro disrupted its rally against the dollar. Initially euro rose after inflation data from Germany was surprisingly high, yet again, confirming interest rates would not fall for months to come.

Producer prices in Germany rose 0.7% in March from February for a 4.2% annual gain. Economists were expecting 0.5% and 4.0% rates, respectively.

The news follows an upward revision earlier this week to HICP inflation, which touched a new record of 3.6%.

Analysts said this type of data justifies the hawkish rhetoric from the European Central Bank and makes any notion of intervention unlikely.

In the UK, the pound was higher, benefiting from news that the Royal Bank of Scotland Group PLC is preparing a rights issue to replenish its capital reserves, which are reported to amount to up to 12 billion pounds.

Furthermore, the pound has been supported by news that the Bank of England is close to agreeing a plan with banks to kick-start interbank lending back to life.

1.EMU growth is moderate but ongoing
2.EMU economic fundamentals are sound
3.There is uncertainty on economy because of market turmoil

Resistance 3: Y105.00
Resistance 2: Y104.20
Resistance 1: Y103.50
Current price: Y103.23
Support 1: Y102.70
Support 2: Y102.20
Support 3: Y101.50
Comments: Dollar rises with resistance comes at Y103.50. Stronger level is around Mar 05 highs at Y104.20. Above the target comes at Y105.00. Support is near Y102.70, stronger – near session lows on Y102.20. Below correction may reach Y101.50.

Resistance 3: Chf1.0350
Resistance 2: Chf1.0220
Resistance 1: Chf1.0180
Current price: Chf1.0165
Support 1: Chf1.0080
Support 2: Chf1.0040
Support 3: Chf0.9960
Comments: Dollar rises. Resistance comes at session high on Chf1.0180with a break above will extend rally to Chf1.0220 and then – to Chf1.0350. Support comes at Chf1.0080, stronger – at Chf1.0040 (session low). Under losses may widen to Chf0.9960.

Resistance 3: $2.0190
Resistance 2: $2.0050
Resistance 1: $2.0000
Current price: $1.9965
Support 1: $1.9920
Support 2: $1.9880
Support 3: $1.9800
Comments: Cable rises after it broke channel resistance line from Mar 14 at $1.9880 (now strong support). Rate has got close to key resistance $2.0000, nut failed to break above. Support comes near $1.9920, stronger – on session lows $1.9880. Then losses may widen to $1.9800. Above $2.0000 the upside target comes at $2.0050, then – strong level on $1.0190 (Mar 27 high).

Resistance 3:$1.6080
Resistance 2: $1.6020
Resistance 1: $1.5980
Current price: $1.5869
Support 1: $1.5860
Support 2: $1.5780
Support 3: $1.5750
Comments: Euro retreats after it failed to break above record highs on $1.5980 (key resistance). Strong support comes near yesterday's low on $1.5860/50. Below correction may target $1.5780 and $1.5750 (Wednesday’s low).
Above records the recover may extend to $1.6020 and $1.6080.

EUR/USD: $1.5730
USD/JPY: Y102.50, Y102.00, Y103.75, Y101.35
AUS/USD: $0.9250
KIWI: $0.7870
USD/CAD: C$1.0180

The yen fell to its lowest level in more than three months against the euro on speculation financial firms will weather credit-market turmoil, encouraging investors to buy higher-yielding assets funded in Japan. German PPI rise revived inflation fears and caused further US dollar losses against European rivals. Prices for goods from newsprint to plastics in Germany increased 4.2% from the same month a year earlier, the most since December 2006, after rising 3.8% in February, the Federal Statistics Office in Wiesbaden said today. The European Central Bank's ceiling for consumer inflation is 2% .

EUR/USD fell to $1.5910 before rebounding to $1.5950. But the rise was short-lived and rate retreated to a new lows near $1.5895.
GBP/USD slid from $1.9740 to $1.9685.
USD/JPY rose from Y101.70 to Y102.17.

Thursday won’t bring anything important in Europe. At 11:00 GMT Canada will release its CPI report. At 12:30 GMT US Labor Department will issue Jobless Claims data. At 14:00 GMT Philly Fed’s index will come. Analysts predict the index rose to -13,0 versus -17,4 in March.

--Mar PSNB Stg10.158bn vs Stg7.088bn in Mar 2007; median Stg7.6bn
--Mar current budget -Stg3.6bn vs -Stg1.3bn in Mar 2007
--FY 07/08 PSNB Stg35.6bn below Budget forecast of Stg36.4bn

"The week of the 12th is also the survey week for the employment report. A survey week comparison indicates that initial claims are down by 3,000. Our preliminary projection is for a decline in April payrolls of 50,000."

"We agree that the U.K. economy most resembles the U.S. in terms of recession vulnerability. Our economists just revised their GDP forecasts to include a slight upward revision to Q1 U.K. GDP from 0.4% (q-o-q, sa) to 0.5% followed by less than 0.25% for each of the remaining quarters - effectively a growth recession even if not a technical one."

1 U.K. - 52%;
2. Eurozone - 14%;
3. Japan - 16%;
4. Australia - 4%;
5. China - 7%;
6. None of the above - 7%.

Resistance 3: Y103.60
Resistance 2: Y103.00
Resistance 1: Y102.30
Current price: Y102.37
Support 1: Y101.70

Support 2: Y101.30

Support 3: Y100.80

Comments: Dollar tries to rebound. Support is around Apr 11 highs on Y102.30 with a break above will target Apr 03 highs on Y102.90/00. Stronger level is near Mar 11 highs on Y103.60. Support comes near session lows Y101.70. Under there is a room for a dipper correction to Y101.30 and then – to Wednesday’s low on Y100.80.

Resistance 3: Chf1.0210
Resistance 2: Chf1.0170
Resistance 1: Chf1.0100Current price: Chf1.0050

Support 1: Chf0.9940
Support 2: Chf0.9880

Support 3: Chf0.9820

Comments: Support comes at yesterday’s low on Chf0.9940, then – on Chf0.9880 (Apr 10 low). Break under will widen losses to Chf0.9820. 0100/10. Resistance comes near session high at Chf1.0005/10 with a break above will extend rise to Chf1.0100 and Chf1.0170 (Apr 09 high).

The Jun S&P contract was last at 0.70 points at 1372.90, with the Nasdaq Jun contract up 6.75 points at 1873.75.

Resistance 3: $2.0120

Resistance 2: $2.0040

Resistance 1: $1.9950
Current price: $1.9949
Support 1: $1.9700

Support 2: $1.9660
Support 3: $1.9610

Comments: Cable keeps positive mood and now targets resistance comes at session high on $1.9950. Stronger level is on April 4 high on $2/0035/40. Support comes near $1.9700, further – at $1.9660. Key level is around trend line from Apr 2006 at $1.9610.

New York's main oil futures contract, light sweet crude for delivery in May, was 19 cents higher at $115.05 a barrel.

Resistance 3:$1.6080

Resistance 2: $1.6020
Resistance 1: $1.5980
Current price: $1.5903

Support 1: $1.5860
Support 2: $1.5780
Support 3: $1.5750

Comments: Euro holds a bit below new record high on $1.5980 (key resistance). Above the recover may extend to $1.6020 and $1.6080. Strong support comes near yesterday's low on $1.5860/50. Below correction may target $1.5780 and $1.5750 (Wednesday’s low).

High Low Close
EUR/USD 1.5980 1.5846 1.5892
USD/JPY 102.70 101.68 102.51
GBP/USD 1.9922 1.9690 1.9895
USD/CHF 1.0092 0.9956 1.0067

EUR/JPY 163.21 162.12 162.90
EUR/GBP 0.8094 0.7969 0.7984
GBP/JPY 204.40 200.53 203.95
GBP/CHF 2.0071 1.9660 2.0026

Change% ChangeLast
Nikkei 225 +252.17 +1.92% 13,398.30
Topix +21.44 +1.7% 1,293.32
CAC +7.04 +0.15% 4,862.14
DAX -21.03 -0.31% 6,681.81
FTSE 100 -65.80 -1.09% 5,980.40
Dow +1.22 +0.01% 12,620.49
NASDAQ -8.28 -0.35% 2,341.83
S&P +0.85 +0.06% 1,365.56
Light Crude (NYM) May 08 ($US per bbl.) 114.86 -0.07
Gold (CMX) June 08 ($US per Troy oz.) 942.90 -5.40

06:00 Germany PPI (March) 0.4% 0.7%
06:00 Germany PPI (March) Y/Y 4.0% 3.8%
08:30 UK M4 money supply (March) provisional - 0.2%
08:30 UK M4 money supply (March) provisional Y/Y - 12.4%
08:30 UK M4 lending (March) provisional, bln - +17.4
08:30 UK PSNCR (March), bln - 2.9