Apria Healthcare Group Inc agreed to be acquired by Blackstone Group for about $1.6 billion, or $21 a share.

Coventry Health Care Inc reduced its projected earnings again citing rising costs.

Evergreen Solar Inc won contracts to supply $600M of equipment to groSolar and Wagner & Co Solartechnik GmbH.

Billionaire investor Kirk Kerkorian's Tracinda Corp. has increased its ownership stake in the Ford Motor Company to 6.49% from 5.5%.

Hewlett-Packard Co. may cut jons in store as the world's largest technology company plans to reduce its printing and imaging group from five to three business units.

The provider of disease-management services to hospitals and doctors Healthways Inc reported $191.4M in third-quarter sales, beating analysts’ forecasts.

The Nasdaq continues to outperform its counterparts, helped by large-cap tech names.Notably, the Nasdaq 100 is up 1.1%. The drop in oil prices is providing fuel for the Dow Jones Transportation Average, which is up roughly 2.6%.

EUR/USD continues to orbit $1.5500 area amid muted flows. bids still eyed at $1.5460.

The dollar rose against the euro for the first time in four days after an unexpected surge in U.K. retail sales led traders to sell the 15-nation currency versus the greenback and buy the pound.
The pound increased to a two-week high versus the euro and advanced against the dollar as U.K. retail sales increased in May by the most since records began in 1986. The Office for National Statistics said in London that British retail sales rose 3.5% last month after falling 0.3% in April. The median forecast of 37 economists was for a 0.1% decrease.
Futures on the Chicago Board of Trade show a 12% chance the Fed will increase the 2% target rate for overnight lending between banks by a quarter-percentage point on June 25, compared with 22% odds a week ago.
The U.S. currency has traded in a range of $1.53 to $1.56 per euro this week after last week's 2.5% increase, the biggest since 2005.
Canada's dollar rose against its U.S. counterpart for a fourth day, its longest winning streak in a month, after a government report showed inflation accelerated in May on fuel prices.

USD/CAD holding around C$1.0135 and off morning lows marked near C$1.0106 where bids ahead of the figure prevented a run on stops.

EUR/USD has edged back up to $1.5493 area in light trading. Pair has stalled several times at levels atop $1.5500 and chatter suggesting offers around $1.5520/30.

Stocks drifted Thursday morning as investors weighed falling oil prices and a big drop in a key manufacturing index.
Stocks have been under pressure this week as oil prices have flirted with new records, adding to worries about inflation. Concerns about the ongoing credit market fallout have also been in play after Morgan Stanley and Goldman Sachs both reported big drops in quarterly profit.
Economy: The Philadelphia Fed index, a regional reading on manufacturing, fell to -17.1 in June from -15.6 in May. The number of Americans filing new claims for unemployment fell modestly by 5,000 last week to 381,000, but stayed at levels that continued to reflect a struggling economy.
Another economic report was more positive. The Conference Board's index of leading economic indicators rose 0.1% in May, as it did in April. Economists had expect LEI to remain unchanged.
Company news: Shares of Ford were little changed despite news that billionaire Kirk Kerkorian's Tracinda Corp. had boosted its stake in Ford to 6.49% from 5.5%.
Circuit City reported a wider loss from a year earlier on weaker revenue due to sluggish sales amid the consumer spending slowdown.

“USD/CAD remains firm in the wake of this morning's release of Canadian May CPI data, which showed headline inflation rose 1.0% on the month (vs consensus at +0.6). The year-on-year rate rose to 2.2% - up significantly from April's 1.7%,” says Stewart Hall of HSBC.

"Central bankers have toned down their rhetoric in the past week, probably in order to contain rate hike expectations.This supports our view that markets have priced in too many rate hikes from major central banks this year, with the ECB the notable exception."

Portfolio managers were asked which currency they expected to rise/fall the most on a trade-weighted basis over the next 12 months. In June, a net 39% of managers looked for the dollar to rise, a net 48% expected the euro to fall and a net 15% looked for the yen to rise. Last month, a net 31% of those polled expected the dollar to rise, a net 50% saw the euro falling and a net 20% looked for the yen to rise.

Traders attribute earlier sharp fall in crude oil prices to wire report that China will increase gasoline and diesel prices by 1,000 yuan ($145.50) a ton starting tomorrow, citing unidentified industry sources. WTI Nymex crude oil is now at $134.15, down $2.53.

A net 18% of managers said gold was overvalued in June, versus 29% who had that view in May.
A net 60% said oil was overvalued at current levels, compared to 52% in May.

Stocks have fallen into the red after trading slightly higher in early action. The dropoff is broadbased as several of the major economic sectors are moving lower. Energy (+1.0%), however, is moving sharply higher.
Energy's advance comes in the face of lower crude oil prices. Oil is currently trading roughly 1.2% to approximately $135 per barrel.
Treasuries are trading out of favor. The 10-year Note is down 9 ticks.

"The weaknesses among the leading indicators have remained fairly widespread in recent mos" and "the economy is very weak." Coincident indicators +0.1%, with 2 up and 2 down.

"The week of the 14th is a survey week for the employment report. A survey week comparison reveals that initial unemployment claims are up by 13,000. Our preliminary estimates are for a decline in June payrolls of 20,000 and a decline in the unemployment rate to 5.4%."

Stock futures continue to indicate a mixed start to Thursday's trading:(S&P futures vs fair value: +2.4. Nasdaq futures vs fair value: -5.8.). Initial jobless claims for the week ending June 14 totaled 381,000, down 5,000 from the prior week, but above the 375,000 claims that were expected. Continuing claims through June 7 totaled 3.06 million, which is down from the previous tally of 3.14 million. Continuing claims were less than expected. Crude for July delivery fell 26 cents to $136.42 a barrel in electronic trading. The contract had risen near $137 a barrel earlier Thursday morning when Shell shut a Nigerian oil field after an attack by a rebel group.
Companies: Boeing got some good news Wednesday when government regulators urged the Air Force to reopen bidding for $35 billion contract that went to rival plane maker Northrop Grumman.

The dollar may rise to $1.45 a euro and 110 yen by year-end as the U.S. economy weathers a housing slump, prompting the Federal Reserve to raise interest rates, said Daisaku Ueno at Nomura Securities Co.

HFE's Ian Shepherdson says the mfg surveys are giving slightly differing signals but if one looks at a wtd sum of subindices for Empire index, it is at -4.1. This is "just a point above Feb's cycle low."

The U.S. currency rebounded from the lowest in a week against the common currency and after a government report showed British retail sales rose in May by the most since records began. The pound advanced against every major currency. U.K. retail sales rose 3.5 percent, the most since the series started in 1986, after falling 0.3 percent in April, the Office for National Statistics said today in London. Economists forecast a 0.1 percent drop.
Earlier the dollar declined to a one-week low against the euro and yen on speculation a Federal Reserve report today will show a contraction in U.S. manufacturing, encouraging the central bank to delay increasing interest rates. Manufacturing in the Philadelphia area probably contracted for the seventh month in June. The Federal Reserve Bank of Philadelphia's general economic index will be at minus 10, from minus 15.6 in May, according to a survey.
The U.S. currency held near a one-week low versus the Australian and New Zealand dollars on concern credit market losses and record oil prices will prolong a U.S. economic slowdown.
The yen and the Swiss franc strengthened as Morgan Stanley's earnings dropped 57 percent, renewing concern credit market losses will deepen. A drop in stocks led traders to reduce investments in higher-yielding assets funded in Japan and Switzerland, a practice known as carry trades. In such trades, investors get funds in a country with low borrowing costs and buy assets where returns are higher.


EUR/USD having posted high at$1.5585 fell to $1.5465. Bids $1.5460, offers $1.5520/25.
GBP/USD traded within $1.9580/1.9630 ahead of UK retail sales data. With the release coming in much stronger than expected, cable jumped, initially stalling at this week's $1.9700 high before another leg higher to $1.9725. Offers $1.9750, $1.9800, bids $1.9670/60.
USD/JPY gained from Y107.40 up to Y107.90. Bids Y107.40,offers Y108.00.



US data starts at 1230GMT, when initial claims are expected to fall 9,000 to 375,000 in the June 14 employment survey week.
US data continues at 1400GMT, with the Philly Fed Business Outlook Survey for June and leading indicators. The Philadelphia Fed index is expected to rise to a reading of -11.4 in June, yet another month indicating outright contraction. The leading indicators index is expected to hold steady in May on the positive impact of a steeper yield curve and rising stock prices.

Kamal Sharma, currency strategist at Bank of America says "What we're really having to contend with at the moment is how central bank rhetoric and economic data is challenging market expectations for monetary tightening by the end of the year in the U.S. and euro area. Over the near term, we think euro/dollar is likely to be a tug of war between competing central bank rhetoric."

-- EMU inflation far from ECB price stability target.

Coming lower in the wake of the stronger Canadian CPI data, bids in the C$1.0150 area taken out, with stops triggered on the break. Next area of demand noted at C$1.0110/00.

The dollar rose against the euro after an unexpected surge in U.K. retail sales revived optimism the world's biggest economies will withstand the fallout from the global credit squeeze.
The U.S. currency rebounded from the lowest in a week against the common currency and after a government report showed British retail sales rose in May by the most since records began. The pound advanced against every major currency. U.K. retail sales rose 3.5 percent, the most since the series started in 1986, after falling 0.3 percent in April, the Office for National Statistics said today in London. Economists forecast a 0.1 percent drop.
``Sterling strength has transferred into dollar strength; the U.K. retail-sales number was ludicrously strong,'' said Adrian Schmidt, a senior currency strategist in London at Royal Bank of Scotland Group Plc. ``The market sees the U.K. and the U.S. as together in the front line of potential weakness in global consumer spending from the credit crunch.''
The dollar will keep trading with a range of $1.51 to 1.58 against the euro in the coming month, Schmidt said.

Resistance 3: Y110.00
Resistance 2: Y109.20
Resistance 1: Y108.60
Current price: Y107.80
Support 1: Y107.45
Support 2: Y106.50
Support 3: Y106.20

Dollar grows. Above Y108.60 (Monday’s high), further resistance comes at Y109.20. Rise above may extend to Jan 10 high on Y110.00/10. Below yesterday's lows on Y107.45, support is around Y106.50. Below correction may reach Y106.20.

- May BOC core CPI +0.3%m/m +1.5y/y (Apr +1.5%)

Resistance 3: Chf1.0540
Resistance 2: Chf1.0500
Resistance 1: Chf1.0465
Current price: Chf1.0437
Support 1: Chf1.0320
Support 2: Chf1.0300
Support 3: Chf0.0260

Comments: Dollar has become stronger. The nearest resistance lies at yesterday'ssession high on Chf1.0465, break above will open a way to Chf1.0500. Higher comes Chf1.0540. The nearest support at today's lows, then is June 12 low at Chf1.0300, than comes Chf1.0260.

Resistance 3: $1.9850
Resistance 2: $1.9800
Resistance 1: $1.9714
Current price: $1.9686
Support 1: $1.9470
Support 2: $1.9400
Support 3: $1.9360

Comments: After unexpectedly strong retail-sales data the pair jumped and for the moment retains positive mood. Minor resistance spotted at today's highs $1.9714, then – near Jun 09 on $1.9800, after which overcoming this level is possible to testing $1.9850. The nearest support is $1.9470 with a break under will open the way to $1.9400 (Last Friday’s low) and then – to May 15 lows on $1.9360.

Resistance 3:$1.5820
Resistance 2: $1.5660
Resistance 1: $1.5580
Current price: $1.5485
Support 1: $1.5460
Support 2: $1.5340
Support 3: $1.5300
Comments: Euro euro could not overcome a level of resistance. The nearest resistance comes at today's highs on $1.5580, then – at $1.5660. Stronger level is around $1.5820. Strong support comes at recent day's low on $1.5460, then – on $1.5340 with a break under will open the way to $1.5300 (Friday’s low).

- Bean to start new 5-year term July 1, 2008

EUR
Ордера на покупку: $1.5586, $1.5650
Ордера на продажу: $1.5460, $1.5410/00, $1.5350

JPY
Ордера на покупку: Y107.43, Y107.20,Y107.00, Y106.80
Ордера на продажу: Y108.50/60, Y108.65/80

GBP
Ордера на покупку: $1.9500, $1.9480/70, $1.9385/80
Ордера на продажу: $1.9720, $1.9790/00

EUR/USD: $1.5550, $1.5570/75, $1.5595, $1.5605, $1.5700
USD/JPY: Y106.00, Y108.00
AUD/USD:$0.9500, $0.9600

The dollar was steady on Wednesday as investors adjusted their interest rate outlooks for the United States and the euro zone after conflicting economic data and monetary authorities toned down threats of tighter policy.Competing central bank rhetoric was likely to make trading conditions more volatile in the days ahead, analysts said.
The dollar rose to near a four-month high against the yen on bets the Federal Reserve will increase borrowing costs later this year while the Bank of Japan holds its target at the lowest level among major economies.
Japan's currency weakened as the Bank of Japan's policy meeting minutes from May indicated ``considerable downside risks.'' U.K. pound stayed lower against the dollar and euro after minutes from the Bank of England's June meeting showed policy makers voted 8-1 to keep its benchmark interest rate unchanged. Policy maker David Blanchflower voted for a quarter-point cut, arguing evidence of slowing growth ``more than outweighed'' the news about short-term inflation.


EUR/USD: торговался в диапазоне $1.5460/1.5540.
GBP/USD: fell to $1.9476 before to rebound till $1.9600/10.
USD/JPY: tested offers near Y108.40, recoiling in a result to Y107.80.

US data also starts at 1230GMT, when initial claims are expected to fall 9,000 to 375,000 in the June 14 employment survey week. US data continues at 1400GMT, with the Philly Fed Business OutlookSurvey for June and leading indicators. The Philadelphia Fed index is expected to rise to a reading of -11.4 in June, yet another month indicating outright contraction. The leading indicators index is expected to hold steady in May on the positive impact of a steeper yield curve and rising stock prices.

closing
Nikkei 225 +104.45 +0.7% 14,452.82
Topix +7.66 +0.6 1,409.64
FTSE 100 -105.00 -1.79% 5,756.90
CAC 40 -67.58 -1.44% 4,618.75
Xetra Dax -67.25 -0.99% 6,728.91
DOW -130.02 -1.07% 12,030.28
NASDAQ -28.02 -1.14% 2,429.71
S&P 500 -13.00 -0.96% 1,337.93
10yr Note -0.7100 -0.168% 4.154%
NYMEX Crude Oil +2.67 +1.99% 136.68
Gold +6.60 +0.74% 893.50

Japanese stock indexes were higher as real-estate stocks advanced after the nation's biggest privately held developer said rising rents will boost profit this year.
Mitsubishi Estate surged 2.8%, the highest since June 4, while Sumitomo Realty & Development Co. added 1.6%. Token leapt 12%, the most since Aug. 13.
NEC Electronics soared 16%, the highest since Dec. 10. The stock was the second-biggest winner on the MSCI World Index. Goldman raised its rating on the shares to ``buy'' from ``neutral,'' saying demand for mobile-phone chips will increase the company's earnings. NEC Corp., the parent of the chipmaker, climbed 3.8%, the highest since July 25. The company, which was delisted from the Nasdaq Stock Market in October after failing to submit its annual report, settled the dispute with the U.S. Securities and Exchange Commission and won't pay a fine, NEC said today in a filing to the bourse.
Automakers rebounded in the afternoon session as the yen depreciated against the dollar. Mazda Motor Corp., which exports 80 percent of domestic production, advanced 2.9%, while Aisin Seiki Co., partly owned by Toyota Motor Corp., jumped 3.2%. Denso Corp., another affiliate of Toyota, added 2.8%.
Nipponkoa Insurance Co. tumbled 4.4%, the most since May 7, while Mitsui Sumitomo Insurance Group Holdings Inc. lost 3.5%. Millea Holdings Inc., Japan's biggest insurance company by value, slumped 1.8%. Insurers were the biggest losers among 33 industry groups on the Topix.

European stocks fell on speculation bank writedowns haven't reached the halfway point and the slowing economy will erode earnings for retailers and property companies.
Sainsbury lost 3.1%. The third-largest U.K. supermarket chain said sales growth slowed in the first quarter as higher living expenses in Britain cut into consumer spending on food and clothes.
Segro, Britain's largest owner of business parks, lost 4.5%. Land Securities Group Plc, the U.K.'s largest real-estate investment trust, declined 2.7%. Redrow dropped 18%, and Bellway Plc, a U.K. homebuilder aimed at first-time buyers, slipped 10%.Carnival fell 3%. Enterprise Inns Plc slipped 5.2%.
UBS, Europe's biggest bank by assets, fell 4%. JPMorgan said the bank will post another 5 billion francs ($4.8 billion) in writedowns in 2008 and widened its estimate for the Swiss company's loss this year to 4.55 francs a share, from 3.33 francs.
Airlines declined after Morgan Stanley analysts cut price estimates, saying rising fuel prices will hurt earnings. Air France-KLM Group, Europe's biggest airline, lost 2.3%. British Airways Plc, the third largest, fell 5.2%. Air Berlin Plc sank 8.5%.

Wall Street indexes fell Wednesday with the Dow falling below 12,000 for the first time in 3 months - as oil surged in afternoon trading ahead of a key options expiration day.
On the earnings front, FedEx issued fiscal year 2009 earnings guidance well below expectations, citing sluggish demand and record energy prices. The Tennessee-based company's earnings missed analyst expectations for its latest quarter.
Morgan Stanley reported 61% year-over-year drop in second quarter earnings per share, but that was good enough to top expectations. However, shares are under pressure after revenue fell well short of estimates.
One day after Goldman Sachs said U.S. banks may need to raise as much as $65 billion in more capital, regional bank Fifth Third Bancorp announced plans to shore up its balance sheet. Specifically, the Ohio-based bank is going to raise $1 billion in fresh capital, sell $1 billion in assets and cut its quarterly dividend by 66% to $0.15 per share.
Shares of pharmaceutical giant Pfizer were up after the company reached a settlement with Ranbaxy Laboratories over the sale of generic versions of the cholesterol drug Lipitor. Under the agreement, Pfizer will not face generic competition until November 2011 -- an extra 20 months. The agreement will have a significant impact on Pfizer's earnings, considering in 2007 Lipitor -- the world's best selling drug -- accounted for $12.6 billion of Pfizer's $48.4 billion in revenue.

Spikes higher as retail sales comes in stronger than expected, offers round this week's $1.9700 highs so far containing the move. Offers said to stretch to $1.9720 with stops above.

- Financial markets situation is still "uncertain"
- Swiss franc, oil prices among inflation risks.
- SNB must remain vigilant on inflation.
- Inflation to drop below 2% in 2009.

The dollar declined to a one-week low against the euro and yen on speculation a Federal Reserve report today will show a contraction in U.S. manufacturing, encouraging the central bank to delay increasing interest rates. Manufacturing in the Philadelphia area probably contracted for the seventh month in June. The Federal Reserve Bank of Philadelphia's general economic index will be at minus 10, from minus 15.6 in May, according to a survey.
The U.S. currency held near a one-week low versus the Australian and New Zealand dollars on concern credit market losses and record oil prices will prolong a U.S. economic slowdown.
The yen and the Swiss franc strengthened as Morgan Stanley's earnings dropped 57 percent, renewing concern credit market losses will deepen. A drop in stocks led traders to reduce investments in higher-yielding assets funded in Japan and Switzerland, a practice known as carry trades. In such trades, investors get funds in a country with low borrowing costs and buy assets where returns are higher.

EUR/USD gained from $1.5525 to $1.5575.
GBP/USD traded within $1.9580/1.9610.
USD/JPY retreated from Y107.85 till Y107.55.

UK data at 0830GMT sees the May retail sales data, which is expected to show a 0.2% increase on the month and a rise of 4.2% on the year.
Central bank meetings are taking place at the Swiss National Bank, which announces its interest rate decision at 1200GMT (publishing the quarterly monetary
policy assessment at the same time) and the ECB. US data also starts at 1230GMT, when initial claims are expected to fall 9,000 to 375,000 in the June 14 employment survey week.
US data continues at 1400GMT, with the Philly Fed Business OutlookSurvey for June and leading indicators. The Philadelphia Fed index is expected to rise to a reading of -11.4 in June, yet another month indicating outright contraction. The leading indicators index is expected to hold steady in May on the positive impact of a steeper yield curve and rising stock prices.

Japan's benchmark stock indices ended Thursday's session sharply lower - although shy of session lows - weighed by the overnight weakness in the US and the strengthening yen. The benchmark Nikkei 225 was down 322.65 points, or 2.23%, at 14138.17. The broader-based TOPIX was lower by 34.04 points at 1375.6.

Resistance 3: Y110.00Resistance 2: Y109.20
Resistance 1: Y108.60
Current price: Y107.54
Support 1: Y107.45

Support 2: Y106.50

Support 3: Y106.20

Comments: Dollar remains under pressure. Above Y108.60 (Monday’s high), further level comes at Y109.20. Rise above may extend to Jan 10 high on Y110.00/10. Below yesterday's lows on Y107.45, support is around Y106.50. Below correction may reach Y106.20.

Resistance 3: Chf1.0520
Resistance 2: Chf1.0460
Resistance 1: Chf1.0360
Current price: Chf1.0330

Support 1: Chf1.0300Support 2: Chf1.0260

Support 3: Chf0.0150

Comments: Dollar is uder pressure. The nearest support is June 12 low at Chf1.0300, than comes Chf1.0260 and Chf1.0150/60. The nearest resistance lies at session high on Chf1.0360, break above will open a way to Chf1.0460(recent day's high). Higher comes Chf1.0520.

Resistance 3: $1.9800
Resistance 2: $1.9700
Resistance 1: $1.9620
Current price: $1.9611
Support 1: $1.9470
Support 2: $1.9400
Support 3: $1.9360Comments: Cable is firm tofay. Minor resistance is around hourly high on $1.9620. Stronger level comes at yesterday’s high on $1.9700, then – near Jun 09 on $1.9800. The nearest support is $1.9470 with a break under will open the way to $1.9400 (Last Friday’s low) and then – to May 15 lows on $1.9360.

Resistance 3:$1.5820
Resistance 2: $1.5660
Resistance 1: $1.5580
Current price: $1.5566

Support 1: $1.5460
Support 2: $1.5340
Support 3: $1.5300

Comments: Euro continues to advance. The nearest resistance comes at today's highs on $1.5580, then – at $1.5660. Stronger level is around $1.5820. Strong support comes at recent day's low on $1.5460, then – on $1.5340 with a break under will open the way to $1.5300 (Friday’s low).

High Low Close
EUR/USD 1.5535, 1.5461, 1.5527
USD/JPY 108.40, 107.70, 107.81
GBP/USD 1.9609, 1.9476, 1.9586
USD/CHF 1.0466, 1.0355, 1.0365

EUR/JPY 168.02, 167.01, 167.43
EUR/GBP 0.7950, 0.7911, 0.7925
GBP/JPY 211.47, 210.40, 211.19
GBP/CHF 2.0409, 2.0280, 2.0303

Change % Change Last
Nikkei 225 +104.45 +0.7% 14,452.82
Topix +7.66 +0.6 1,409.64
FTSE 100 -105.00 -1.79% 5,756.90
CAC 40 -67.58 -1.44% 4,618.75
Xetra Dax -67.25 -0.99% 6,728.91
DOW -130.02 -1.07% 12,030.28
NASDAQ -28.02 -1.14% 2,429.71
S&P 500 -13.00 -0.96% 1,337.93
10yr Note -0.7100 -0.168% 4.154%
NYMEX Crude Oil +2.67 +1.99% 136.68
Gold +6.60 +0.74% 893.50

07:30 Switzerland SNB Interest Rate Decision 2,75%
08:30 UK Retail sales (May) Y/Y 4.2%
08:30 UK Retail sales (May) -0.2%
11:00 Canada CPI excluding food and energy (May) Y/Y 1.0%
11:00 Canada CPI excluding food and energy (May) 0.3%
11:00 Canada CPI (May) Y/Y 1.7%
11:00 Canada CPI (May) 0.8%
12:30 USA Jobless claims (week to 14.06) 384K
14:00 USA Philadelphia Fed index (June) -10.0 -15.6
14:00 USA Leading indicators (May) 0.1% 0.1%
22:45 New Zealand Visitor Arrivals (May) -11.8%