Stock markets: Thursday results. [E]

Closing:

Nikkei -462.98 (-3.1%) 14,633.03

FTSE 100 -143.40 (-2.5%) 5562.90

DOW +8.96 (+0.08%) 10939.86

NASDAQ -6.48 (-0.30%) 2145.32

S&P 500 +1.78 (0.14%) 1257.93

10YR 100 30/32 +4/32 5%

Japan stock market dived yesterday. Nikkei 225 felt to a years minimum on inflation fears of 4 FED representatives that assumes the further growth of interest rates in the USA - the largest export market of Japan.

The list of main losers leaded Toyota Motor Corp. and Canon Inc.

Toyota felt on 3.4%. Shares lost 17% beginning from 21 April.

Honda Motor Co. drop on 3.8%; Canon - 2.5%. After achievement of a record maximum on May, 2nd the shares lost 16 %.

Sony Corp. conceded 2.8 %.The largest in Japan oil refining company Inpex shares dived on 2.1 %; Japan Petroleum - 5.1 %.

EU stock exchanges also closed in a red zone following the tendency.

ECB on Thursday elevated itтs benchmark rate on 25 b.p. up to 2.75 % that was the third time since December of the prior year. The Central bank of Denmark followed the tendency. Unexpectedly the same did the Central banks of India, the Republic of South Africa and South Korea.

FED representative has once again expressed concern upon inflation.

BHP lost 4.7 %; BP - 3.4 %. It followed the collapse in the world commodity-raw markets where the prices for copper, aluminum and zinc decrease the third day successively alongside with oil. Copper has fallen on 6.2 % to $7,300/ton. Aluminum has decreased for 4.3 % and zinc - 8.4 %.

The fears about growing interest rates continued to put pressure on US stocks despite the falling of oil prices following the report about death of Abu Musab al-Zarqawi, the leader of terrorist group in Iraq.

Before the bell US Labour Department published report on Jobless Claims. According to statistic on previous week the claims of Americans reduced on 35К to 302К

After market opening April report Wholesales inventories became the reason for traders attention. According to issued data inventories increased on 0.9% against 0.6% in March (revision from +0.2%).

Corporate front: Citigroup analysts decreased forecasts on Advanced Micro Devices, Inc. profit in 2006 to $1.14/share from $1.28.

Merrill Lynch lowered rating of Fannie Mae shares to "neutral" from "buy".

Hayes Lemmerz Intl Inc losses for the 1Q made 46 cents/share. Prior data showed 20 cents drop.

Citigroup has lowered the annual forecast on profit Intel Corporation to 77 c./shr. From 86 c.

McDonald's Corporation sales in May have increased for 4.5 %.

Oil has sharply fallen yesterday and traded below $70 for barrel on the message, that as a result of aviation attack nearby Baquba (Iraq), al-Zarqawi has been killed. The July futures for American light oil closed on $70.25/barrel (-0.8 %).

Trade volumes: NYSE 2.07 bln. shr. ; Nasdaq: 2.61 bln.