ECONOMY & MARKETS

The 30-share prime index of the Bombay Stock Exchange (BSE), the Sensex, dropped 3.42 percent, Friday, to its lowest close in nearly six months on fears of economic slowdown in the US and rising inflation back home.

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The Federal Reserve on Friday announced emergency measures to add $200 billion into the banking system in a bid to ease persistent liquidity strains that are leading to a global credit freeze.

Treasury prices gave back earlier gains on Friday after the Federal Reserve announced a plan to boost loans to banks, offsetting early news that the U.S. lost more jobs than expected in February.

Crude oil prices hit a new record in New York above $106 on concerns the U.S. Federal Reserve will add more cuts on interest rates.

Japan stocks plunged more than 3 per cent because of increasing concern for the U.S. housing market. Investors also worried for Japanese steelmakers stocks that are declining these days.

U.S. stocks were mixed on Friday on news of the biggest drop in nonfarm payrolls in nearly five years while semiconductor and financial shares gained. Chip maker Intel Corp rose 1.9 percent to $20.25 after falling earlier in the week after it cut its quarterly gross margin forecast, helping to boost the tech-heavy Nasdaq index. Both the Dow Jones and Standard &Poor's Index were in the red in morning trading.

Treasuries rose on Thursday as concerns over the credit and housing markets sent investors to the protection of safe-haven investments, including government bonds.

U.S. stocks dropped to a six-week low Thursday on renewed concern about the credit markets after U.S. home foreclosures rose to a record, increasing market worries about the sagging economy.

The FTSE 100 share index rose on Wednesday by 85.8 points to 5,853.5 after dropping for five consecutive days.

Tokyo stocks slightly dropped back Wednesday as investors wait for new U.S. economic data.

Ten-year treasuries fell for the third day in a row on Wednesday after a report about U.S. services industries noted that they contracted less than expected, indicating a stronger than expected economy.

U.S. stocks opened higher on Wednesday, led by energy and financial companies due to higher crude oil prices and increased optimism about technology spending after reassuring comments from Cisco Systems Inc. Fannie Mae, the largest U.S. source of mortgage financing, climbed after Morgan Stanley said earnings may improve next year, pushing financial shares up.

The Sensex, the 30-share prime index of the Bombay Stock Exchange (BSE), took a beating on Tuesday, ending down 338 points on reports that the overseas operations of India's No.2 bank, ICICI Bank, had lost $264.34 million due to its exposure to the subprime crisis.

U.S. stocks dropped to an 18-month low on Tuesday , after Federal Reserve Chairman Ben Bernanke urged banks to write down more mortgage debts. Financial shares led indexes to fall while oil and gold dropped from previous records.

Japan stocks closed Tuesday almost unchanged as investors worried about soaring raw material prices and the U.S. dollar's depreciation.

Ten year U.S. Treasuries fell on Monday despite new manufacturing and construction data which reinforces concerns that the Federal Reserve may cut lending costs.

U.S. stocks edged lower Monday for a third day after analysts reduced earnings estimates for securities firms while manufacturing report was not as bad as forecast, while a separate report on construction showed a steep weakness in spending on non-residential projects.

China's securities regulator has approved to launch three new mutual funds on Friday.

Treasuries rose on Friday, sending two-year yields to the lowest level in nearly four years, on new economic data which led investors to raise their expectations for a recession.

U.S. stocks hit session lows on Friday afternoon, with the market being weighed down by a huge loss from insurance giant AIG and on fears of an economic recession, causing all indexes to fall more than 2 percent.

U.S. government bond prices extended their rally on Friday after a much weaker than expected Chicago purchasing management report.

Stocks fell on Friday after data pointed to more deterioration in the economy and the largest loss in insurer American International Group Inc's history signaled the worst was far from over for the beleaguered financial sector.Benchmark indexes sank to session lows after two widely watched surveys indicated U.S. consumer sentiment was at its lowest in 16 years and Midwestern business conditions were the weakest in more than six years.

Tokyo stocks dropped over 2 percent on Friday, marking the lowest level this week as the yen gained on the U.S. dollar.

Treasuries rose on Thursday after a U.S. government showed the economy grew at a slower rate in the fourth quarter of 2007 than forecast and jobless claims rose more than expected.

Sensex, the prime index of the Bombay Stock Exchange (BSE), fell marginally by 0.01 percent or 1.51 points, Thursday, dragged down by weak market sentiments ahead of announcement of India's annual budget on Friday.

U.S. stocks extended losses Thursday, pushing the Dow Jones and the S&P 500 down more than 1 percent, after Federal Reserve Chairman Ben S. Bernanke said some smaller banks are likely to fail and jobless claims rose.

Treasury notes turned slightly lower lower on Wednesday after regulators removed some lending restrictions from Fannie Mae and Freddie Mac, and Federal Reserve Bank Chairman Ben Bernanke indicated a willingness to continue lowering interest rates.

In a bid to tap into the boom in commodities trading, the Bombay Stock Exchange (BSE) has picked up 26 percent stake in Ahmedabad-based National Multi-Commodity Exchange of India Ltd (NMCE) for about Rs.100 crore ($25 million).