Archer Daniels Midland Company - The world's largest grain processor said third-quarter profit rose 42% on grain trading profits and higher soybean production.
Bp Plc - The global oil company said its net surged 63% to $7.6B.
Gildan Activewear Inc - North America's biggest T-shirt maker said second-quarter profit rose less than the company had forecast and earnings for the year will fall short of its earlier projections.
Mastercard Inc - The world’s second-largest credit-card network said its first-quarter net income more than doubled on gains from the sale of its investment in Brazil's Redecard SA and the end of a customer contract.
Merck & Co., Inc - The third-largest U.S. pharmaceutical said Cordaptive, an experimental cholesterol drug, has been rejected by the FDA for the second time in four days. Merck said the FDA issued a "not approvable" letter, saying it needed more information on the long-touted key addition to its lucrative cholesterol franchise.

MPC job to look through short-term CPI spike.
Further decline in sterling FX would help UK econ
May see some decline in sterling.

The major indices are trading with slight losses, with the S&P 500 trailing the Dow and Nasdaq.The S&P 500 is practically split down the middle, with nearly 50% of issues posting a gain, and 50% posting a loss. Leading the way are Chevron (CVX 94.92, +2.42) and Abbot Laboratories (ABT 53.60, +1.99). Merck (MRK 37.31, -4.13) and Monsanto (MON 114.56, -7.43) are the main laggards

The dollar strengthened to a three- week high against the euro on speculation the Federal Reserve will signal that it's done lowering interest rates.
The currency is headed for its first monthly advance against the euro this year, and also gained versus the Norwegian krone and pound today, as interest-rate futures show the Fed may lower borrowing costs tomorrow and then pause. The yen increased against all of the major currencies as a drop in stocks encouraged investors to sell higher-yielding assets.
Futures on the Chicago Board of Trade show an 82 percent chance the Fed will cut the target rate for overnight lending by a quarter-percentage point to 2 percent tomorrow and 71 percent odds that the rate will be held at that level in June.
The yen rose 2.1 percent against the New Zealand dollar and 1.7 percent versus the pound as the drop in stocks led investors to reduce carry trades in which they get funds in a country with low borrowing costs and purchase assets where returns are higher. Japan's target lending rate of 0.5 percent compares with 8.25 percent in New Zealand and 5 percent in the U.K.
The pound was poised for its biggest monthly decline against the dollar in 2008 after the Bank of England reported that mortgage approvals fell in March to the lowest in at least nine years. Sterling dropped 0.9 percent to $1.9735 per dollar.
The euro was under pressure as the Bloomberg purchasing managers index showed today that European retail sales dropped the most in more than four years in April. Another report showed that French consumer confidence dropped this month to a record low as accelerating inflation squeezed incomes.
Australia's dollar dropped 0.5 percent to 93.38 U.S. cents after the New York-based Conference Board's Australian index of leading economic indicators fell in February for a third month.

-MPC Must Cut Rates Sooner Rather Than Later
-More Monetary Policy Action Needed To Avoid UK Recession
-BOE Should Have Cut Bank Rate More Aggressively

June crude contract has slipped sharply on the day, is down over $3 as it trades to $115.60 after printing at $119.93 yesterday. Weekly oil data due Wednesday, Platts pre-report survey looks for a build of 1.6 mn bbl.

Stocks slid Tuesday morning after a report showed consumer confidence fell to its lowest level in five years, and investors held back ahead of the Federal Reserve's decision on interest rates.
Drugmaker Merck said late Monday that the Food and Drug Administration is requesting more information regarding its cholesterol drug candidate Cordaptive. Merck shares fell more than 8% in early trade.
Credit card processor Visa (V) reported a jump in quarterly profit late Monday. But shares fell nearly 2% in morning trade as investors had hoped for even more robust results.
Troubled home lender Countrywide, which is in the process of being bought by Bank of America, reported a loss of nearly $900 million during the first quarter on higher housing-related credit losses.
Deutsche Bank AG (DB), Germany's largest bank, announced a $4.2 billion writedown for the first quarter. The bank's CEO said financial market conditions during the quarter were "the most difficult in recent memory."
On the upside, the world's largest maker of liquid crystal display glass, Corning, reported that first-quarter profit more than tripled versus last year on strong demand for flat screen TVs and computers. Shares rose nearly 5%.
Video game maker Take-Two Interactive's (TTWO) released the latest installment of its Grand Theft Auto video game series Tuesday. "Grand Theft Auto 4" is expected to break sales records and could give Take-Two more room to negotiate for a higher price from rival Electronic Arts (ERTS), which has launched a hostile takeover bid.

Cable was pressuring session low at $1.9706, where break isseen extending weakness to $1.9680 and $1.9650/55, where former is thevalue of the 1.00% moving average envelope and latter a support linefrom February 20. Traders look for cable to drift lower ahead ofuber-dove MPC member David Blanchflower who speaks at the David HumeInstitute in Edinburgh at 1700GMT. Cable trades at $1.9725.

Continues to trade with a heavy tone, a recent bounce to Y103.40 quickly reversing in current trade for prints near Y103.25 again. Light bids mentioned at Y103.20, stops a risk below with mixed interest at Y102.75/.80 area as bids and stops will be tested.

1y infl expectations are 6.8% vs 6.1% in Mar.
Expectations 50.1 vs 49.4
Present Situation 80.7 vs 90.6.

HFE economist Ian Shepherdson says accelerating home price drops are moving consumer confidence lower - one reason to brace for downside surprises. He calls this unsettling and says we can only hope that lower confidence does not lower spending too much.

- Strong euro cushions impact of costly oil

The dollar rose against the euro and traded near a two-month high against the yen on speculation the Federal Reserve will signal tomorrow that it's close to pausing interest-rate cuts.

Futures on the Chicago Board of Trade show a 20% chance that the Fed will hold the target rate for overnight lending between banks at 2.25% tomorrow, compared with 6% odds a week ago.

EUR/USD printed session low at $1.5540. before stabilized within $1.5555/80. Bids $1.5540, stronger $1.5515/10.

GBP/USD weakened to $1.9720.

USD/JPY traded within Y104.05/35 before posted low at Y103.75. Small demand now comes in at Y103.50, more significant at Y103.30.

Loss of $1.60 per share, expectations were for a loss of about $0.12 per share.

As euro-yen extends losses on the day, dollar-yen triggering stops under Y104.00. Small demand now comes in at Y103.50, more significant at Y103.30.

The Fed's accompanying statement is "likely to move partway towards a more balanced assessment of growth and inflation risks". "Although the FOMC will not want to close off entirely the possibility of further easing, Fed policymakers would prefer to take a pause, in order to assess how the economy responds to the aggressive monetary policy easing and the $168bn fiscal stimulus plan", add economists at GS. "While the market is now pricing in a Fed rate hike by the end of this year and a further 75bp of rate hikes in 2009, we believe interest rates will remain on hold through end-2009. The expectation that the Fed will stand on the sidelines for longer than the market currently expects is based on our view that beyond any temporary boost to growth in the second half of this year from easier fiscal policy, the economy is likely to weaken somewhat in the first half of 2009", according to GS.

The dollar rose against the euro and traded near a two-month high against the yen on speculation the Federal Reserve will signal tomorrow that it's close to pausing interest-rate cuts. Futures on the Chicago Board of Trade show a 22 percent chance that the Fed will hold the target rate for overnight lending between banks at 2.25 percent tomorrow, compared with 6 percent odds a week ago. The balance of bets is for a reduction of a quarter-percentage point. There is a 68 percent probability the rate will be held at that level at the Fed's June meeting.
The U.S. currency headed for its first monthly advance versus the yen and euro since December as traders increased bets the Fed will stop lowering borrowing costs after a quarter- percentage point reduction tomorrow. New Zealand's dollar slid after a government report showed the nation's trade deficit unexpectedly widened.
``Basically, I think the Fed will be indicating that if we are not at the bottom, we're very close to the bottom of the rate cycle,'' said Simon Derrick, London-based head of currency strategy at Bank of New York Mellon Corp. ``The dollar is on the turn.''
The dollar's gains may be limited as the Conference Board will probably report at 1400GMT that U.S. consumer confidence probably fell to the lowest level since 1993. The group's index declined to 61.1 in April, from 64.5 in March.

Resistance 3: Y106.00
Resistance 2: Y105.30
Resistance 1: Y104.80
Current price: Y104.11
Support 1: Y103.90

Support 2: Y103.30

Support 3: Y102.60

Resistance 3: Chf1.0540
Resistance 2: Chf1.0480
Resistance 1: Chf1.0430Current price: Chf1.0374

Support 1: Chf1.0300
Support 2: Chf1.0150

Support 3: Chf1.0000

Resistance 3: $2.0030
Resistance 2: $1.9970
Resistance 1: $1.9890
Current price: $1.9756
Support 1: $1.9750
Support 2: $1.9720
Support 3: $1.9670

Comments: Pound remains under pressure. Break under $1.9800 open the way to $1.9760 and then – to Friday’s low on $1.9670.

- Non-financial sector is doing incredibly well

Resistance 3:$1.6020
Resistance 2: $1.5880

Resistance 1: $1.5700

Current price: $1.5572

Support 1: $1.5550
Support 2: $1.5500
Support 3: $1.5420

Comments: Euro tries to rebound, but moves still limited. Resistance is around Friday’s highs at $1.5700. Stronger resistance is near $1.5880. Key level is around life-time high on $1.6015/20. Support comes at Friday’s low on $1.5550 with further losses near $1.5500 and below – on $1.5420.

EUR/USD: $1.5400

USD/CHF: Chf1.0025

AUS/USD: $0.9450

"We suspect some upside surprise potential may come from inventories, which we think might rise a bit (+$3bn), which would add 0.7 ppts to growth," HSBC economists say.

European stocks are mixed on Tuesday session after Deutsche Bank reported a first quarter net loss of E131mln -- for the first time in 5-years and writedown of E2.7bln. BP is top gainer on FTSE-100 after it reported Q1 profits rose 63% and raised Q1 dividend nearly 30%. CAC-40 is down 21pts (-0.41%), Xetra-DAX is down 33pts (-0.49%) and FTSE-100 is up 33pts (+0.53%).

EUR
Bids: $1.5560, $1.5400
Offers: $1.5665/70, $1.5700

JPY
Bids: Y104.00, Y103.30
Offers: Y104.35/40, Y104.80, Y105.00, Y106.50

GBP
Bids: $1.9860/50, $1.9800/1.9780
Offers: $1.9915/20, $1.9960/70, $2.0000/20

"We now think that the Fed this week will lower the funds rate by 25 bp to 2% - the trough in rates for this cycle. Previously, we thought that the trough would be at 1.75%. The difference reflects our and likely the Fed's sense that upside risks to inflation are now nearly as important as the downside risks to growth."

The dollar rose against the euro and traded near a two-month high against the yen on speculation the Federal Reserve will signal tomorrow that it's close to pausing interest-rate cuts.
The U.S. currency headed for its first monthly advance versus the yen and euro since December as traders increased bets the Fed will stop reducing rates after a quarter-percentage point cut tomorrow. New Zealand's dollar slid after a government report showed the nation's trade deficit unexpectedly widened.
The dollar has risen 2.3% from a record low against the euro of $1.6019 touched April 22.
Futures on the Chicago Board of Trade show a 20% chance that the Fed will hold the target rate for overnight lending between banks at 2.25% tomorrow, compared with 6% odds a week ago.

EUR/USD printed high on $1.5660 before retreated sharply to a new session low on $1.5595.
GBP/USD also weakens to $1.9860.
USD/JPY slowly rose from Y104.00 to Y104.20.

Today Japan’s markets are closed in observance of national holiday.
In Europe attention will be on UK data, including lending and money supply figures. Also CBI retail sales report is schedule to come.
At 14:00 GMT US consumer confidence report will be released. Analysts expect index fell to 62.0 in April after 64.5.

Stock market fixing:
Nikkei 225 +30.90 +0.2% 13,894.37
Topix +21.84 +1.6% 1,361.75
CAC +34.54 +0.69% 5,012.75
DAX +28.75 +0.42% 6,925.33
FTSE 100 -1.00 -0.02% 6,090.40
Dow -20.11 -0.16% 12,871.75
NASDAQ +1.47 +0.06% 2,424.40
S&P -1.47 -0.11% 1,396.37
Light Crude (NYM) June 08 ($US per bbl.) 118.75 +0.23
Gold (CMX) June 08 ($US per Troy oz.) 895.50 +5.80

Most Japanese stocks rose Monday, led by financial companies, as accelerating inflation boosted speculation lending rates will widen.
Sumitomo Mitsui Financial Group Inc. headed for the biggest gain in more than four years, while Aiful Corp. jumped to a three-month high.
The Topix index rose 10.20, or 0.8%, to 1,350.11. The Nikkei 225 Stock Average fell 57.72, or 0.4% 13,805.75.
U.S. crude oil futures hit a record high of $119.93 on Monday because of supply worries caused by attacks in Nigeria and the closure of a British oil pipeline following a refinery strike.
Japanese markets will be closed Tuesday.

European equity markets started the week on a buoyant note as a rally in banking and commodities stocks underpinned a fourth successive day of gains.
The FTSE Eurofirst 300 was up after JPMorgan said the worst of the writedowns for European banks was over. The broker said it favoured Societe Generale, which rose 1.2%, and Credit Suisse, up 2.7%.
Hopes for a banking recovery were further stoked by a report in Der Spiegel, the German magazine, which said Deutsche Bank was planning to raise up to €17bn for acquisitions. The most likely scenario would see Germany’s largest bank buying Commerzbank, it said. Deutsche Bank added 0.8%. Commerzbank rose 2.2%.
Energy stocks advanced after oil spiked to a record. France’s Total rose 0.4% and Norway’s StatoilHydro rose 3.8%.

Stocks closed mixed Monday, as investors welcomed Mars' $23 billion buyout of Wrigley and Verizon's earnings. But gains were limited amid record oil and gas prices at the start of a busy week on Wall Street.
In other earnings news, RadioShack reported lower quarterly earnings and sales that nonetheless topped forecasts.
Telecom was the session's best performing economic sector, gaining support from Verizon. Earlier this morning Verizon reported sales and earnings per share results that matched analysts' expectations for the most recent quarter. Exxon-Mobil and Wrigley were the most influential leaders. Microsoft and Monsanto were the most influential laggards.

The dollar was little changed against the euro Monday amid speculation the Federal Reserve will signal at its meeting this week that it's close to ending cuts in borrowing costs. Futures on the Chicago Board of Trade show an 18% chance that the Fed will hold the target rate for overnight lending between banks at 2.25% at its April 30 meeting, compared with 6% odds a week ago. The balance of bets is for a reduction of a quarter-percentage point.
The U.S. currency rose 1.2% versus the euro last week, the most since mid-March, as traders began to price out additional Fed rate reductions and growth in Europe showed signs of a slowdown.
The Australian, Norwegian and New Zealand currencies increased against the dollar and yen after crude oil rallied to a record high of $119.93 a barrel.

EUR/USD was close to $1.5600, but failed to break above and retreated to session lows on $1.5590. Later euro rebounded to $1.5660.
GBP/USD printed low at $1.9780 before rising to $1.9960 amid demand on GBP/JPY. Rate failed to set above $1.9900 and retreated to $1.9890.
USD/JPY tested resistance but it was strong enough and dragged the rate down to Y104.05.

Today Japan’s markets are closed in observance of national holiday.
In Europe attention will be on UK data, including lending and money supply figures. AlsoCBIretailsalesretortisscheduletocome.
At 14:00 GMT US consumer confidence report will be released. Analysts expect index fell to 62.0 in April after 64.5.

Resistance 3: Y106.00
Resistance 2: Y105.30
Resistance 1: Y104.80
Current price: Y104.29
Support 1: Y104.00
Support 2: Y103.30
Support 3: Y102.60
Comments: Dollar holds a bit higher session low on Y104.00. Next band of support is around Thursday’s low on Y103.30 with a break under will open the way to Apr 22-23 lows on Y102.60/70. Resistance comes at recent highs on Y104.80 with resistance comes at Y105.30 and then – on Y106.00.

Resistance 3: Chf1.0540
Resistance 2: Chf1.0480
Resistance 1: Chf1.0430
Current price: Chf1.0356
Support 1: Chf1.0300
Support 2: Chf1.0150
Support 3: Chf1.0000
Comments: Techs on dollar hasn’t changed. Support comes at Friday’s low on Chf1.0300. Below Thursday’s low at Chf1.0150 the rate may dip to Chf1.0000. Strong resistance is around Friday’s high on Chf1.0430 with a break above will extend rise up to Chf1.0480. Stronger resistance is near Fibo level on Chf1.0540 (61.8% of Chf1.1110 - Chf0.9640 decline).

Resistance 3: $2.0190
Resistance 2: $2.0050
Resistance 1: $1.9960
Current price: $1.9894
Support 1: $1.9800
Support 2: $1.9760
Support 3: $1.9670
Comments: Pound consolidates within the narrow range. Resistance comes at yesterday’s high on $1.9960 with a break above will point to Apr 04 high on $2.0050 and stronger level at $2.0190 (Mar 27 high). Strong support comes at $1.9800, with a break under widens the correction to $1.9760 and then – to Friday’s low on $1.9670.

Resistance 3:$1.6020
Resistance 2: $1.5880
Resistance 1: $1.5700
Current price: $1.5635
Support 1: $1.5600
Support 2: $1.5550
Support 3: $1.5500
Comments: Techs on euro hasn’t changed. Support comes at yesterday’s low on $1.5600, then – near Friday’s low on $1.5550 with further losses target $1.5500. Resistance is around Friday’s highs at $1.5700. Stronger resistance is near $1.5880. Key level is around life-time high on $1.6015/20.

High Low Close
EUR/USD 1.5691 1.5592 1.5651
USD/JPY 104.79 104.05 104.19
GBP/USD 1.9963 1.9779 1.9906
USD/CHF 1.0367 1.0299 1.0338

EUR/JPY 163.85 162.83 163.08
EUR/GBP 0.7904 0.7831 0.7859
GBP/JPY 208.59 206.74 207.43
GBP/CHF 2.0640 2.0433 2.0578

Change % Change Last
Nikkei 225 +30.90 +0.2% 13,894.37
Topix +21.84 +1.6% 1,361.75
CAC +34.54 +0.69% 5,012.75
DAX +28.75 +0.42% 6,925.33
FTSE 100 -1.00 -0.02% 6,090.40
Dow -20.11 -0.16% 12,871.75
NASDAQ +1.47 +0.06% 2,424.40
S&P -1.47 -0.11% 1,396.37
Light Crude (NYM) June 08 ($US per bbl.) 118.75 +0.23
Gold (CMX) June 08 ($US per Troy oz.) 895.50 +5.80

Japan Day of the Nature
06:45 France Consumer confidence (April) -37 -36
08:30 UK M4 money supply (March) final - 0.8%
08:30 UK M4 money supply (March) final Y/Y - 12.0%
08:30 UK M4 lending (March) final, bln - +17.7
08:30 UK Consumer credit (March), bln - +2.4
09:00 Italy PPI (March) - 0.7%
09:00 Italy PPI (March) Y/Y - 5.7%
10:00 UK CBI retail sales volume balance (April) - +1%
12:55 USA Redbook (26.04)
14:00 USA Consumer confidence (April) 62.0 64.5
17:00 France Unemployment (March) - -13.7K
23:30 Japan Unemployment (March) - 3.9%
23:30 Japan Household spending (March) real Y/Y - 0.0%
23:50 Japan Industrial output (March) preliminary - 1.6%
23:50 Japan Industrial output (March) preliminary Y/Y - 5.1%