America Movil Sab De Cv The provider of wireless and fixed communication services in Latin America was downgraded by two investment banks after reporting poorer-than-expected first-quarter cash flow numbers.
Baidu Com Inc China’s Internet search engine giant reported that earnings for the first quarter rose 71.5% from one year ago, and sales more than doubled.
Ericsson L M Tel Co The Swedish telephone equipment company said first quarter revenue rose more than expected, “reflecting the demand for mobile infrastructure, especially in high-growth markets.”
Microsoft Corporation The software maker’s shares fell after reporting that third-quarter sales missed forecasts and sales of its Windows software fell 24%, raising questions about the strength of one of its core businesses in a slowing economy.

The stock market is attempting to cross into positive territory after spending the afternoon in a rut. Up until now, stocks have gone largely unchanged since midday.
Oil continues to trade near the $119.00 mark. After slipping in yesterday's action, crude has climbed more than 2.5% Friday.
The energy sector (+0.8%) is trading higher in response to oil's rebound. Oil and gas explorers and producers are benefiting the most this session. Occidental Petroleum (OXY 86.16, +3.33) and Devon Energy (DVN 118.17, +2.96) are two of the session's primary leaders in that industry.
Support for the dollar has resurfaced and pushed the Dollar Index 0.3% higher. The index is trading at 72.75 currently.

The dollar posted the biggest two- day advance against the euro since December as traders increased bets the Federal Reserve will stop cutting interest rates while the European economy showed signs of a slowdown.
The euro fell to a three-week low against the dollar after a European Central Bank report showed money supply growth slowed more than economists forecast last month. The Australian and New Zealand dollars dropped against all of the major currencies as lower commodity prices dimmed the outlook for growth.
``We have gone from a situation where the market was excessively pessimistic about the U.S. to perhaps a little bit complacent about what comes next, and that has benefited the dollar,'' said Robert Sinche, head of global currency strategy at Bank of America Corp. in New York. ``At the same time, we're seeing data in Europe looking less robust.''
The dollar touched $1.5555 Friday, the highest since April 3. The dollar was little changed at 104.20 yen, compared with 104.26. The euro dropped 0.3 percent to 162.96 yen, from 163.45.
The U.S. currency has increased 1.6 percent versus the euro in two days after hitting a record low of $1.6019 per euro on April 22. It's up 1.4 percent against the euro since April 18, the biggest weekly gain since March. The dollar is 0.6 percent higher versus the yen, for its second week of gains. The euro has dropped 0.6 against the yen.
Futures on the Chicago Board of Trade show a 30 percent chance that the Fed will hold the target rate for overnight lending between banks at 2.25 percent, compared with 2 percent odds a week ago. There's a 70 percent chance policy makers will cut by a quarter-percentage point.
``The Fed may be done cutting rates after next week, and that's put a floor under the dollar,'' said Jeremy Stretch, senior market strategist at Rabobank International, the third- largest Dutch bank. ``There's also a realization the economic momentum in the euro area is waning.'' The dollar may strengthen to $1.5550 in the next week, Stretch predicted.
The yen appreciated versus the euro Friday after a government report showed Japan's core consumer prices increased 1.2 percent in March from a year earlier, the most in a decade. Japan's five-year notes had their biggest slump in almost nine years as traders increased speculation that the Bank of Japan will increase its 0.5 percent target lending rate this year.
The Australian dollar fell 0.8 percent to 93.18 U.S. cents, pushing its two-day drop to almost 1.8 percent, while the New Zealand dollar declined 0.7 percent to 78.24 U.S. cents. A stronger U.S. dollar eroded demand for precious metals used to hedge against losses in the greenback. Gold for immediate delivery headed for a weekly drop of 2 percent, trading at $892.10 an ounce.

"With inflation concerns having increased, the Fed may soon join the ECB in keeping rates on hold...The Fed is likely to cut rates at a slower pace and the tax rebates give the Fed scope to pause this summer, but we judge the easing cycle to be far from over."

The stock market has fallen to fresh lows after trading near the unchanged mark for much of the morning. Only three of the ten major economic sectors are trading with gains.
Oil has been an undermining factor to Friday's sentiment. After falling in yesterday's trading, crude is now up 2.8% and trading hands at $119.30 per barrel. Oil traders have been made skittish after reports that strikes at a BP (BP 69.12, +1.31) refinery in Scotland and an unrelated facility in Nigeria could jeopardize production. Oil hit an all-time intraday record of $119.90 per barrel this past Tuesday.

The stock market is largely unchanged from previous levels as participants look for direction.
The financial sector (+0.2%) has relinquished its leadership position and is now trading with modest gains. Mirroring the downturn, shares of Bank of America (BAC 37.84, -0.03) went from trading 2.0% higher to trading with a slight loss.
The materials sector (+1.2%) is now the only sector with a gain of more than 1.0%. Monsanto (MON 122.10, +3.18) and Newmont Mining (NEM 44.03, +1.03) are providing materials with support. Shares of the two companies have traded lower in each of the preceding three sessions.
Crude has climbed more than 2.5% to 119.00 per barrel.

The S&P 500 is trading with meager gains, while the Dow Jones has come off its morning low to dance along the unchanged line. The tech-rich Nasdaq continues to underperform its counterparts, trading in negative ground.
Shares of Ford Motor Company (F 7.76, -0.64) are trading lower today after being downgraded at JPMorgan and Merrill Lynch. JPMorgan downgraded Ford's shares to Neutral from Overweight and Merrill downgraded the shares to Sell from Neutral. Yesterday, shares of Ford made their highest single-session climb in years after announcing a profit that reversed a loss in the prior year.

GBP/USD tries to rebound, holding at $1.9852. Offers were reported in place between $1.9865/75, more toward $1.9900. Bids now reported in place back at

$1.9825/20, more toward $1.9800 with stronger interest between $1.9780/70.

EUR/USD saw modest lift to $1.5645 area in the wake of the soft U-Mich data but the pair remains contained. Offers still mentioned between the $1.5640/50 zone.

Dollar weakens slightly on the slight deterioration in the final UMich data. EUR/USD holds near $1.5640, GBP/USD at $1.9842, and USD/JPY – on Y104.21.

USD/JPY: Y104.00, Y103.20, Y100.00
USD/CAD: C$99.95
AUS/USD: $0.9380, $0.9870

USD/JPY holds near Y104.38 with expiries at Y104 and Y105, a trader says. Supply remains at Y104.90/00. Bids back at Y104.00, just below overnight low at Y104.07.

David Cohen, head of Asian economic forecasting at Action Economics - "They (Fed policy makers) will be biased toward a steady rate going forward and will probably express more concern about inflation. Further rate cuts may not be the most effective way to handle a further deterioration in the economy and the worsening mortgage crisis."

Stock futures rose Friday as a stronger dollar helped investors maintain the previous session's upbeat mood.

Stocks advanced Thursday, lifted by strong earnings from automaker Ford and a sharp drop in crude prices.

Oil prices rose slightly Friday, but remained near weekly lows. A barrel of U.S. crude rose to $116.73. Crude prices, which neared $120 a barrel earlier this week.

Companies to watch include Microsoft, which reported a drop in profit late Thursday that still managed to top expectations. The company issued an upbeat forecast for 2009, but investors expressed disappointment with the firm's current quarter outlook. Shares fell 5%.

American Express reported a dip in profits late Thursday. But cardholder spending continued to grow and overseas sales were robust, sending shares up 4%.

Merrill Lynch is in discussions with private equity firm TPG which could lead to TPG taking a stake in the investment bank if Merrill needs more capital.

Honda reported a big drop in quarterly profit. The automaker also said the coming months will be difficult amid a rising yen and slowing North American economy.

In the day's only bit of major economic news, a report on consumer sentiment is due at 14:00 GMT.

"the picture for the US manufacturing sector remains weak and today's durables data don't change the outlook for Q1 business investment that - according to our calculations - will be a drag for growth in Q1." Also, "we confirm our call for a -0.1% decline in GDP growth in Q1 (q/q annualized). More weakness is also expected in Q2 and a modest technical recession cannot be ruled out."

Kazuya Ito, fund manager at Daiwa SB Investments: “The Fed is expected to halt its easing cycle after carrying out an expected 0.25% cut next week, and the Bank of Japan is also expected to eventually return to the stance of normalizing interest rates.”

Data released today

06:00GermanyImport prices (March) 0.4% 0.7% 1.1%

06:00GermanyImport prices (March) Y/Y 5.7% 6.0% 5.9%

06:00GermanyImport prices excluding oil (March) Y/Y 1.5% - 1.6%

08:00EU(15)M3 money supply (March) adjusted Y/Y 10.3% 10.6% 11.3%

08:00EU(15)M3 money supply (3 months to March) adjusted Y/Y 11.1% 11.0% 11.5 (11.4)%

08:30UKGDP (Q1) preliminary 0.4% 0.5% 0.6%

08:30UKGDP (Q1) preliminary Y/Y2.5% 2.6% 2.8%

The dollar headed for its biggest weekly gain in a month against the euro as traders raised bets the Federal Reserve will stop cutting interest rates.

The euro fell to its lowest level in three weeks after a European Central Bank report showed money-supply growth slowed more than economists forecast last month. The odds of the Fed keeping its target rate for overnight loans between banks on hold this month increased to 26%, from 2% a week ago, futures trading shows.

The yen advanced against the euro after a government report showed Japan's core consumer prices increased 1.2% in March from a year earlier, the most in a decade. Japan's five- year notes had their biggest slump in almost nine years as traders speculated the Bank of Japan will lift interest rates this year.

EUR/USD fell from $1.5713 to $1.5560. Later rate set stable within the $1.5580/$1.5610 range.

GBP/USD printed low at $1.9675 before rallying to $1.9880. Currently rate holds near $1.9840.

USD/JPY tested Y104.80 before retreated to Y104.20/30.

At 14:00 GMT Michigan consumer confidence index will be released. Analysts expect index rose to 63.9 points in April from 63.2.

USD/JPY: Y104.00, Y103.20, Y100.00
USD/CAD: C$99.95
AUS/USD: $0.9380, $0.9870

Analysts at ML note: "Net effect of durables was to push our estimate for Q1 GDP from -0.1% to +0.3%. About half of the upward adjustment was due to stronger investment (tied to the elevation in shipments) and the other half was due to higher inventories. However, the softness in orders together with an inventory offset, imply somewhat weaker economic performance in Q2. Indeed, we now see Q2 tracking at -2.0%, versus our prior estimate of -1.5%."

Analysts at Dresdner Lleinwor are concerned about the outlook for inflation and do not want to ease policy too aggressively at this point." From UBS: est -25, and language of statement to be "similar to last time but perhaps less suggestion of more easing to follow--still downside risk on growth"; Fed to ease 25 in both June and Aug, end the yr at 1.5%.

EUR/GBP continues to slide, extends easing to stg0.7850, from overnight highs of stg0.7955 and recently posted life time high at stg0.80985 (April 16). Bids seen placed toward stg0.7850, with interest extending to stg0.7840. Further demand then noted between stg0.7830/20. Offers now seen placed from above stg0.7880, more toward stg0.7900.

The pound rose after the release of UK GDP due to relief among some investors, who were braced for the growth figures to be worse than they turned out to be.

Official figures showed GDP grew by only 0.4% in the first quarter, a three-year low and down from 0.6% in the previous quarter. A majority of analysts were forecasting a 0.5% rate.

Despite the softer growth rate, the pound was bought up by investors comforted by the fact that growth did not post a nastier surprise.

Upbeat retail sales and hawkish Bank of England minutes this week made a rate cut next month very unlikely and suggest monetary policy will loosen only gradually. Although the data kept the pound well-bid, the currency's value was limited by an appreciation in the dollar.

1.Financial market crisis will last throughout 2008
2.Have to take financial market turmoil 'very seriously'

Analysts at Dresdner Lleinwor are concerned about the outlook for inflation and do not want to ease policy too aggressively at this point." From UBS: est -25, and language of statement to be "similar to last time but perhaps less suggestion of more easing to follow--still downside risk on growth"; Fed to ease 25 in both June and Aug, end the yr at 1.5%.

Resistance 3: Y106.00
Resistance 2: Y105.30
Resistance 1: Y104.80
Current price: Y104.40
Support 1: Y103.30
Support 2: Y102.60
Support 3: Y102.20
Comments: Dollar tests resistance near Y104.40 (session’s high), more important is on Y105.30, and also near Y106.00. The nearest support is yesterday's low at Y103.30. Medium support is April 22-23 low at Y102.60/70, while lower comes Y102.20.

Resistance 3: Chf1.0540
Resistance 2: Chf1.0480
Resistance 1: Chf1.0430
Current price: Chf1.0371
Support 1: Chf1.0280
Support 2: Chf1.0150
Support 3: Chf1.0000
Comments: Dollar gains. Resistance is around session high at Chf1.0430, then comes Chf1.0480 and Fibo level at Chf1.0540 (61.8% of decline from Chf1.1110 to Chf0.9640). Support comes at April 18 high at Chf1.0280. Stronger level is on Chf1.0150 with a break under widens losses to Chf1.0000.

Resistance 3: $1.9970
Resistance 2: $1.9860
Resistance 1: $1.9820
Current price: $1.9803
Support 1: $1.9680
Support 2: $1.9630
Support 3: $1.9600
Comments: Pound recovers. Resistance comes near yesterday's high at $1.9820/30. Further level is around $1.9860 and $1.9970 ( April 23 high). Support comes at yesterday's low on $1.9680. Stronger level is around trend support line from Apr 2006 at $1.9630. Then rate may dip down to $1.9600.

Resistance 3:$1.6020
Resistance 2: $1.5880
Resistance 1: $1.5700
Current price: $1.5585
Support 1: $1.5550
Support 2: $1.5500
Support 3: $1.5420
Comments: Euro continues to decline. The nearest support is session’s low on $1.5550, further support is $1.5500 and $1.5420. The nearest resistance is $1.5700. Stronger resistance is $1.5880 while more important is new record high printed on $1.6015/20.

USD/JPY: Y104.00, Y103.20, Y100.00

USD/CAD: C$99.95

AUS/USD: $0.9380, $0.9870

Manuel Oliveri, economist at UBS - "If earnings releases remain constructive, and macroeconomic data fails to disappoint, this will provide the Fed with room to assess the impact of its aggressive easing so far."

The euro dropped the most against the dollar since June 2004 and slumped versus the yen as reports showed German and French business confidence fell this month.

The Munich-based Ifo institute said its German business climate index, based on a survey of 7,000 executives, fell to 102.4, from 104.8 in March. Economists had forecast a drop to 104.3. An index of sentiment among 4,000 French manufacturers slid to 106 in April from a revised 108 in March, Insee, the Paris-based national statistics office, said today.

European policy makers have been wary inflation will quicken after the cost of crude surged 82% in the past year.

New home sales totaled 526,000 during March, which is below the consensus forecast of 580,000 units. New home sales during February were revised lower from 590,000 to 575,000.

Futures on the Chicago Board of Trade show an 86 percent chance the U.S. central bank will cut the target rate for overnight lending between banks by a quarter-point on April 30. The balance of bets is for no reduction.

EUR/USD fell from $1.5880 to $1.5636, rebounding later till $1.5680.
GBP/USD retreated from $1.9800 to $1.9680, but could gain till $1.9730/80 in final trade.
USD/JPY printed low at Y103.30 before to be back till Y104.50.

closing
Nikkei 225 -38.29 (-0.3%) 13,540.87
Topix -6.82 (-0.5%) 1,307.57
DAX 30 +26.29 (+0.4%) 6821.32
САС 40 -15.10 (-0.3%) 4929.55
FTSE 100 -32.90 (-0.54%) 6050.70
Dow +85.73 (+0.67%) 12848.95
Nasdaq +23.71 (+0.99%) 2428.92
S&P +8.88 (+0.64%) 1388.81
10YR -24/32 97 10/32 3.82%
OIL NYMEX -2.24 (-1.89%) $116.06


Japanese stocks retreated after JFE Holdings Inc. declined to issue a forecast for the current year in its earnings report, igniting concern higher raw material costs will lower steelmakers' profits.
JFE, Japan's second-largest steelmaker, dropped the most in two weeks after gaining as much as 1.8 percent in morning trading. Mizuho Financial Group Inc., the country's third-biggest bank by market value, reversed early gains after Credit Suisse Group reported a loss more than three times what analysts had estimated.
Mitsui O.S.K. Lines Ltd. led shipping lines higher on speculation growth in emerging economies will spur demand for commodities. The Baltic Dry Index, a measure of shipping costs for commodities, advanced 3.7 percent yesterday to the highest level since Jan. 2.
Nippon Steel Corp., the country's biggest producer of the alloy and which will release its earnings tomorrow, declined 1.5%. Sumitomo Metal Industries Ltd., the third biggest, dropped 2.1%. Mizuho slipped 0.4%, while larger rival Mitsubishi UFJ Financial Group Inc. lost 1 percent to 996 yen. Credit Suisse, Switzerland's second-biggest bank said during the afternoon session it had a net loss of 2.15 billion Swiss francs ($2.1 billion) in the first three months of 2008, its first quarterly loss in almost five years.
Mitsui O.S.K., Japan's second-biggest shipping line operator by sales, jumped 2.4%, and Kawasaki Kisen Kaisha Ltd., the third largest, rose 2.3%.

European shares fell after German business confidence sank to the lowest in two years, Nobel Biocare Holding AG slashed its sales estimate and Persimmon Plc's outlook weighed on U.K. homebuilders.
Nobel Biocare tumbled 11%. The Glattbrugg, Switzerland-based company cut its sales forecast by about half and said first-quarter profit fell because of a weaker U.S. dollar and fewer orders. Persimmon sank 6.4 percent to 608.5 pence. The U.K.'s largest homebuilder by market value said sales have dropped 24 percent to 1.37 billion pounds ($2.71 billion) so far this year and cancellations increased. Barratt Developments Plc, the U.K.'s second-largest house builder by volume, sank 11%. Taylor Wimpey Plc, Britain's biggest homebuilder, tumbled 5.5%.
ABB added 6.5%. The world's largest builder of electricity networks said first-quarter profit climbed 87 percent, beating analyst estimates, as China and India increased investment in power stations and grids.UniCredit SpA, Italy's largest bank, increased 3.2%. Deutsche Postbank AG, Germany's biggest consumer bank by clients, gained 4%.
PSA Peugeot Citroen, Europe's second-largest carmaker, sank 3.2%. The company said new cars should help it meet a full-year growth target for sales of 5 percent. Royal Dutch Shell Plc, Europe's biggest oil company, retreated 1.9%. Total SA, the region's biggest refiner, lost 1 percent to 52.14 euros.BHP Billiton Ltd., the world's largest mining company, slid 4.1%. Rio Tinto Group, the third-biggest, sank 4.2%.

Stocks closed Thursday higher despite disappointing tech profit forecasts and weak readings on housing and manufactured goods.

Economic news. Durable goods orders fell for a third straight month in March, the Commerce Department reported. New home sales in March fell to a 16-year low, and February sales were revised lower, in the latest reading on the hard-hit housing sector.

The dollar headed for its biggest weekly gain in a month against the euro and a second winning week versus the yen on increasing speculation the Federal Reserve will stop cutting interest rates.

The U.S. currency held near a two-week high against the euro as the extra yield two-year German government bonds offer over similar-maturity Treasuries narrowed to the least since February. The British pound fell for a third day versus the dollar before a report economists say will show economic growth slowed in the first quarter.

The yen rose against the euro after a government report showed Japan's core consumer prices increased 1.2 percent in March from a year earlier, the most in a decade. Japan's five- year notes headed for the biggest slump in almost nine years after today's inflation data added to speculation the Bank of Japan will increase interest rates this year.
The U.K. currency dropped before a report that economists say will show British economic growth slowed to 0.4 percent in the first quarter, from 0.6 in the previous three months.

EUR/USD traded within $1.5660/1.5705
GBP/USD was bounded within $1.9720/60.
USD/JPY fell from Y104.42 to Y104.05.

Japanese stock indices ended sharply higher Friday, boosted by the weaker yen. The benchmark Nikkei 225 was higher by 322.60 points, or 2.38%, at 13863.47. The broader-based TOPIX was ahead by 32.34 points at 1339.91.

Financial market tensions are continuing and the total cost of the turbulence remains unclear, Axel Weber said Friday. "It looks as though the tensions on financial markets are not yet over," Weber said at a banking conference here, according to a text provided by the Bundesbank, which he heads. "Because of the widespread prevailing uncertainty about the actual extent of the financial exposure and possibly still forthcoming problems, trust among market participants continues to be significantly damaged," he said.

Resistance 3: Y106.00
Resistance 2: Y105.30
Resistance 1: Y104.50
Current price: Y104.50
Support 1: Y103.30

Support 2: Y102.60

Support 3: Y102.20

Comments: Dollar tests resistance near Y104.50(yesterday's high), more important is on Y105.30, and also near Y106.00. The nearest support isyesterday's low at Y103.30. Medum support is Aoril 22-23 low at Y102.60/70, while lower comes Y102.20.

Resistance 3: Chf1.0450
Resistance 2: Chf1.0430
Resistance 1: Chf1.0380

Current price: Chf1.0366

Support 1: Chf1.0280
Support 2: Chf1.0150

Support 3: Chf1.0000
Comments: Dollar gains. Resistance is around session high at Chf1.0380, then comes Chf1.0430 and Chf1.0450/60 zone. Support comes at April 18 high at Chf1.0280. Stronger level is on Chf1.0150 with a break under widens losses to Chf1.0000.

Resistance 3: $1.9970
Resistance 2: $1.9860
Resistance 1: $1.9820
Current price: $1.9718
Support 1: $1.9680
Support 2: $1.9630
Support 3: $1.9600
Comments: Pound is under pressure. Support comes at yesterday's low on $1.9680. Stronger level is around trend support line from Apr 2006 at $1.9630. Than rate may dip down to $1.9600. Resistance comes near yesterday's high at $1.9820/30. Higher comes$1.9860 and $1.9970 ( April 23 high).

Resistance 3:$1.6020
Resistance 2: $1.5880

Resistance 1: $1.5760
Current price: $1.5671

Support 1: $1.5640
Support 2: $1.5590
Support 3: $1.5530

Comments: Euro continues to decline. The nearest support is yesterday's low on $1.5640, further support is $1.5590 and $1.5530. The nearest resistance is $1.5760. Medium resistance is $1.5870/80 while more important is new recor high printed on $1.6015/20.

High Low Close
EUR/USD 1.5888, 1.5636, 1.5678
USD/JPY 104.51, 103.30, 104.28
GBP/USD 1.9814, 1.9685, 1.9721
USD/CHF 1.0382, 1.0146, 1.0353

EUR/JPY 164.49, 162.89, 163.53
EUR/GBP 0.8027, 0.7935, 0.7947
GBP/JPY 206.11, 204.15, 205.68
GBP/CHF 2.0454, 2.0080, 2.0419

Change % Change Last
Nikkei 225 -38.29 (-0.3%) 13,540.87
Topix -6.82 (-0.5%) 1,307.57
DAX 30 +26.29 (+0.4%) 6821.32
САС 40 -15.10 (-0.3%) 4929.55
FTSE 100 -32.90 (-0.54%) 6050.70
Dow +85.73 (+0.67%) 12848.95
Nasdaq +23.71 (+0.99%) 2428.92
S&P +8.88 (+0.64%) 1388.81
10YR -24/32 97 10/32 3.82%
OIL NYMEX -2.24 (-1.89%) $116.06

New Zealand Anzac Day
Australia Anzac Day
08:00 EU(15) M3 money supply (March) adjusted Y/Y 11.3%
08:00 EU(15) M3 money supply (3 months to March) adjusted Y/Y 11.4%
08:30 UK GDP (Q1) preliminary 0.4% 0.6%
08:30 UK GDP (Q1) preliminary Y/Y 2.5% 2.8%
14:00 USA Michigan sentiment index (April) final 63.9 63.2