The Dow Chemical Company, the largest U.S. chemical maker will raise prices on its products by as much as an additional 25% starting July 1 to make up for surging energy costs. This is on top of up to 20% increases that began June 1.

Eastman Kodak Co., the imaging products maker said it will buy back up to $1B or about a quarter of its outstanding stock.

Nokia Corp is acquiring the rest of U.K.-based Symbian, a provider of software for advanced cell phones, in a move that will likely increase competition for Apple.

NYSE Euronext, the parent company of the New York Stock Exchange, announced that it would be paying $250M for a 25% stake in Qatar's Doha Securities Market, the company's largest ever investment in a foreign exchange.

Euro-yen remains firm just under o/n highs around Y168.25, after breaking above that level to post a new 11-month highs near Y168.38. Minor offers seen at Y168.50, with stronger offers seen at Y168.90 to Y169.00, just ahead of the life-time high of Y169.05, the life-time highs seen July 2007.

The dollar fell against the euro as consumer confidence dropped this month to a 15-year low and housing prices plunged in April, reducing speculation the Federal Reserve will increase borrowing costs later this year.
The U.S. currency weakened as the central bank started a two-day meeting at which it's forecast to keep the target lending rate at 2 percent, the lowest level in more than three years. The yen depreciated to an 11-month low versus the euro on speculation Japanese investors will use summer bonuses to buy overseas assets offering higher yields than at home.
``Our short-term outlook is for dollar weakness,'' said Benedikt Germanier, an analyst at UBS AG in Stamford, Connecticut. ``After today's data, the Fed has no reason to talk hawkish tomorrow.'' The dollar may drop to $1.60 per euro within a month, he said.
Crude oil rose for a third day as the weaker dollar enhanced the appeal of commodities as an inflation hedge. Crude oil for August delivery increased as much as 1.5 percent to $138.75 a barrel.
Futures contracts on the Chicago Board of Trade show a 34 percent chance the Fed will increase the target rate for overnight lending between banks by at least a quarter-percentage point at its August meeting, down from 47 percent odds a week ago. The chance of an increase to 2.25 percent tomorrow is 12 percent, compared with 16 percent a week ago.
The U.S. Conference Board reported that its confidence index dropped to 50.4 in June from a revised 58.1 in May. The gauge reached the lowest level since February 1992.
The dollar has gained 1.5 percent against the euro this quarter as traders bet the economic slowdown sparked by the collapse of the subprime-mortgage market will spread to Europe as the U.S. recovers. This year, the dollar is down 6.9 percent.

The stock market is posting a modest gain at midday, rebounding from its early losses after financials sparked a broad-based recovery. This helped offset falling consumer confidence and home prices, as well as an earnings warning from UPS.
Financials slipped 1.1% in the early-going, and then rallied to a gain 2.2%. Wachovia is up 5.1% on reports this morning that the company hired Goldman Sachs to "evaluate various alternatives." Some bargain hunting interest is helping to lift financials-- at this session's low the sector was down 14% month-to-date.
Dow Chemical (-0.36) is again raising prices to combat rising energy costs, with a price increase of as much as 25% in July.

Stocks cut losses Tuesday, thanks to a rise in financial stocks, but remained under pressure after a plunge in consumer confidence and home prices ahead of the latest interest-rate decision from the Federal Reserve.
The Dow Jones industrial average, the broader Standard & Poor's 500 index and the tech-heavy Nasdaq composite all declined 35 minutes into the session.
Stocks were flat to lower Monday amid rising oil prices and ongoing financial and automaker woes.
The package delivery firm UPS cut its second-quarter earnings forecast after the close Monday, citing slower economic growth and higher fuel costs. Shares of UPS fell more than 4.5% Tuesday morning.
U.S. light crude oil for August delivery rose 23 cents to $136.97 in early volatile trade on the New York Mercantile Exchange.
The central bank's two-day policy meeting began, with a decision expected Wednesday afternoon. The bankers are expected to hold a key short-term interest rate steady at 2%, while the statement is expected to stress that the Fed is staying vigilant on inflation.

The major indices pare a larger portion their losses as the financial sector reverses to a gain of 1.1% from a loss of 1.1%. The large-cap diversified banks group (+2.6%) is leading the way higher.
Separately, grocery store operator Kroger (KR 28.27, +2.27) is seeing a nice boost after this morning reporting quarterly earnings of $0.58 per share, which is three cents better than the consensus estimate.

"If confidence stays at this level or moves even lower, real consumer spending and economic growth will slow even more, perhaps sharply."

Just hitting the wires, the Conference Board said June consumer confidence slipped 13% to 50.4. This fell short of the expected reading 56.0 and marks the lowest consumer confidence since 1992.
The major indices extended their opening declines, and then fall further on the worse-than-expected economic report. All ten economic sectors are posting a loss. The materials sector (-2.0%) is showing weakness, as is consumer discretionary (-1.4%).
The healthcare sector is outperforming on a relative basis, with a decline of 0.6%.

EUR/USD $1.5800
USD/JPY Y107.90
EUR/JPY Y167.30
AUD/USD $0.9475
NZD/USD $0.7480

Futures continue to suggest a lower start to trade (S&P futures -8.2., Nasdaq futures -20.3). Dow Chemical announced that it is going to raise the price of its products by as much as an additional 25% in July to offset the spike in energy costs. UPS lowered its second quarter earnings outlook well below the consensus estimate. The company cited slow U.S. economic growth and the spike in fuel costs. The FOMC kicks off its two-day meeting today.
Crude is trading up 0.9% to $138.00 per barrel.
The Fed is widely expected to keep the fed funds rate unchanged at 2.00%.

Failure to breaka bove the reported resistance area between stg0.7925/30 prompts spec longs to cover back, sales taking the rate back below stg0.7910, in turn lifting cable back above $1.9660. Euro-sterling offers remain in place to stg0.7930, more between stg0.7945/55. Bids stg0.7895/90.

The pare slipped back to $1.5555/50, after profit take rally failed near $1.5580. Demand still in place between $1.5470/60. A break below expected to add to downside momentum with the initial target of $1.5350.

The U.S. dollar fell against the euro as the Federal Reserve prepared to start a two-day rate- setting meeting today before a private report that's likely to show consumer confidence fell to a 15-year low this month.
The currency also declined before a separate report that economists say will show house prices in 20 U.S. metropolitan areas plunged in April by the most since records began in 2001. The Fed will probably hold its target rate at 2 percent, interest-rate futures showed. The yen dropped on speculation Japanese investors will use summer bonuses to buy overseas assets offering higher yields than at home.

The currency also declined toward a four-month low against the dollar as Japanese finance companies seek to raise more than 1 trillion yen ($9.2 billion) for funds investing abroad by June 30, according to data compiled by Bloomberg. The dollar was little changed against the euro as an industry survey may show U.S. consumer confidence slumped, reinforcing expectations the Federal Reserve will leave interest rates on hold tomorrow.

EUR/USD: posted high at $1.5580 before nested itself within the $1.5580/50 range. Offers $1.5580/90 and $1.5610. Bids $1.5550, stronger at $1.5520.
GBP/USD: after BBA mortgage data the pare fell from $1.9700 to session low of $1.9625. Strong demand between $1.9630/25 caused rebound to $1.9660/65 ahead of US opening. Bids $1.9630/25, $1.9610/00. Offers $1.9700.
USD/JPY: remained within Y107.80-Y108.20 range. Offers Y108.40/60, bids Y107.10/00

US data starts at at 1400GMT with the OFHEO Home Price Index for April, Consumer Confidence for June and the Richmond Fed manufacturing index for June. The index of consumer confidence is expected to fall to a reading of 56.4 in June. High gasoline prices and weak hiring remain key factors for the confidence data. Late US data sees the 2200GMT release of the ABC News/Washington Post weekly survey of US consumer confidence.

"This week saw the market scale back its expectations of a 25-bp rate hike at the Fed's August meeting on the prompting of unnamed senior Fed officials. We believe that this is prudent considering the substantial economic problems that Chairman Bernanke must still manage. However, the Fed will continue to talk tough on inflation, and be ready to act even as the US economy remains sluggish heading into 2009."

European focus:

The U.S. dollar fell against the euro as the Federal Reserve prepared to start a two-day rate- setting meeting today before a private report that's likely to show consumer confidence fell to a 15-year low this month.
The currency also declined before a separate report that economists say will show house prices in 20 U.S. metropolitan areas plunged in April by the most since records began in 2001. The Fed will probably hold its target rate at 2 percent, interest-rate futures showed. The yen dropped on speculation Japanese investors will use summer bonuses to buy overseas assets offering higher yields than at home.
``Uncertainty about what the Fed's going to say and the weak U.S. data today are likely to keep the dollar on the back foot,'' said CarstenFritsch, a currency strategist in Frankfurt at Commerzbank AG, Germany's second-biggest lender. ``Yesterday's dollar strength was on the back of weaker euro- area data, and now the focus is back on the U.S.'' The dollar may trade as low as $1.5650 over the next day, Fritsch said.
The U.S. Conference Board's confidence index declined to 56 in June, the lowest since December 1992, from 57.2 in May, according to a Bloomberg News survey of economists. The research group is scheduled to release the data at 1400GMT.

``Weak consumer confidence could ripple through the currency market and keep pressure on the dollar,'' said Hideki Amikura, deputy general manager of foreign exchange at Nomura Trust and Banking Co., a unit of Japan's largest brokerage. ``Expectations for a Fed rate increase later this year are slowly peeling away.'' The dollar may fall to 107.60 yen today, he forecast.

Resistance 3: Y110.00
Resistance 2: Y109.20
Resistance 1: Y108.60
Current price: Y107.93
Support 1: Y107.20
Support 2: Y106.50
Support 3: Y106.20

Comments: Pair remains within the former range. 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 lows on Y107.20, support is around Y106.50. Below correction may reach Y106.20.

Resistance 3: Chf1.0540
Resistance 2: Chf1.0500
Resistance 1: Chf1.0470
Current price: Chf1.0401
Support 1: Chf1.0390
Support 2: Chf1.0300
Support 3: Chf0.0260

Comments: Pair failed to break above the resistance at yesterday's session high on Chf1.0470, and remains under pressure. The nearest support at Chf1.0390, then the June 12 low at Chf1.0300, and Chf1.0260. Sustained break above Chf1.0470 will open a way to Chf1.0500. Further level comes on Chf1.0540.

2008 EMU growth satisfactory, not worrisome
Higher oil means June forecasts understate inflation
Monday's PMI, Ifo data won't affect policy
If inflation worsens after July more action needed.

Resistance 3: $1.9850
Resistance 2: $1.9800
Resistance 1: $1.9740
Current price: $1.9636
Support 1: $1.9470
Support 2: $1.9400
Support 3: $1.9360

Comments: No change since the last update. 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. Minor resistance spotted at yesterday high on $1.9740, then – near Jun 09 on $1.9800, with a break above this level there is a room for testing $1.9850.

Resistance 3:$1.5820
Resistance 2: $1.5660
Resistance 1: $1.5580
Current price: $1.5557
Support 1: $1.5460
Support 2: $1.5340
Support 3: $1.5300

Comments: Euro failed to break the closest support at $1.5500. And now trades near the resistance at $1.5580. Break higher to open the way to $1.5660. Stronger level is around $1.5820. The strong support comes at recent lows on $1.5460, then – on $1.5340 with a break under will open the way to $1.5300 (Friday’s low).

- Stagnation would be good result in Q2
- Strong euro helps offset oil price, but on balance negative.

The S&P Sept contract was last 2.10 points higher at 1320.40, with the Nasdaq Sept contract up 1.50 points at 1919.50. US indices ended little changed ovenight.

The yen fell to an 11-month low against the euro on speculation Japanese investors will use summer bonuses to buy overseas assets offering higher yields than at home.
The currency also declined toward a four-month low against the dollar as Japanese finance companies seek to raise more than 1 trillion yen ($9.2 billion) for funds investing abroad by June 30, according to data compiled by Bloomberg. The dollar was little changed against the euro as an industry survey may show U.S. consumer confidence slumped, reinforcing expectations the Federal Reserve will leave interest rates on hold tomorrow.

EUR/USD: Opened around $1.5490 before rebounded to high at $1.5580. Offers $1.5580/90 and $1.5610.
GBP/USD: due to general dollar selling pressure the pare gained from $1.9620/25 to $1.9700.
USD/JPY: traded within Y107.80-Y108.20 range. Offers Y108.40/60, bids Y107.10/00

European data starts at 0600GMT with German July GfK consumer confidence data, followed at 0645GMT by France housing starts and consumer manufacturing spending for May and at 0650GMT by France June manufacturing sentiment. Consumer manufacturing spending is seen rebounding +0.8%m/m, +2.2% y/y, while manufacturing sentiment data is expected to edge lower to 101. Italy June ISAE consumer confidence data is due at 0730GMT.

Markets remain directionless ahead of the FOMC's rate meeting. The benchmark Nikkei 225 was down 7.91 points, or 0.06%, at 13849.56. The broader-based TOPIX was up 1.26 points, or 0.09%, at 1349.61.

EUR/USD $1.5800
USD/JPY Y107.90
EUR/JPY Y167.30
AUD/USD $0.9475
NZD/USD $0.7480

-- Says market is "hijacked" by speculators
-- Says not aware of Kuwait oil output increase.

Resistance 3: Y110.00
Resistance 2: Y109.20
Resistance 1: Y108.60
Current price: Y108.05
Support 1: Y107.20
Support 2: Y106.50
Support 3: Y106.20

Comments: 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 lows on Y107.20, support is around Y106.50. Below correction may reach Y106.20.

Resistance 3: Chf1.0540
Resistance 2: Chf1.0500
Resistance 1: Chf1.0470
Current price: Chf1.0440
Support 1: Chf1.0320
Support 2: Chf1.0300
Support 3: Chf0.0260

Comments: Pair failed to break above the resistance at yesterday's session high on Chf1.0470, break above will open a way to Chf1.0500. Further level comes on 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: $1.9760
Current price: $1.9656
Support 1: $1.9470
Support 2: $1.9400
Support 3: $1.9360

Comments: Minor resistance spotted at yesterday high on $1.9740, then – near Jun 09 on $1.9800, with a break above this level there is a room for 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.

After a short-lived recovery this spring, GfK's sentiment index is set to fall 0.8 point to +3.9, the lowest level since December 2005.

Resistance 3:$1.5820

Resistance 2: $1.5660
Resistance 1: $1.5550
Current price: $1.5532
Support 1: $1.5460
Support 2: $1.5340
Support 3: $1.5300

Comments: Euro failed to break the closest support at $1.5460. The stronger one comes at on $1.5340 with a break under will open the way to $1.5300 (Friday’s low).

The nearest resistance comes at $1.5550, then – at $1.5660. Stronger level is around $1.5820.

FTSE and DAX up 4, with the CAC up2 and the Eurostoxx 50 unchanged.

High Low Close
EUR/USD 1.5627 1.5467 1.5513
USD/JPY 108.04 107.15 107.84
GBP/USD 1.9755 1.9584 1.9647
USD/CHF 1.0492 1.0341 1.0454

EUR/JPY 167.77 166.85 167.31
EUR/GBP 0.7916 0.7890 0.7893
GBP/JPY 212.20 211.07 211.90
GBP/CHF 2.0565 2.0410 2.0540

Change % Change Last

Nikkei 225 -84.61 -0.61% 13,857.47
Topix -8.81 -0.7% 1,347.93
DAX 30 +11.02 +0.17% 6,589.46
САС 40 +2.10 +0.05% 4,511.37
FTSE 100 +46.40 +0.83% 5,667.20
Dow -0.33 -0.00% 11,842.36
Nasdaq -20.35 -0.85% 2,385.74
S&P +0.07 +0.01% 1,318.00
10YR +0.3100 +0.075% 4.168%
OIL NYMEX +1.04 +0.77% 136.40
Gold -16.70 -1.85% 887.00

06:45 France Consumer spending (May) - -0.8%
06:45 France Consumer spending (May) Y/Y - 0.4%
06:45 France Business confidence (June) - 102.0
07:30 Italy Consumer confidence (June) - 103.2
12:55 USA Redbook (21.06)
14:00 USA Consumer confidence (June) 57.0 57.2

14:00 USA Housing Price Index (April) -0.5% -0.4%
14:00 USA Housing Price Index (April) y/y -3.4%
14:00 USA Richmond Fed Manufacturing Index (Jun) -3

23:50 Japan Trade balance (May) unadjusted, trln - 0.485