3.5% down , page-29

keep an eye on the us Don't panic yet. China raising rates could give the Fed and the RBA reason to pause if there is a correction tomorrow in commod prices and you might see a very quick rebound. Will depend on the US tonight and tomorrow. Don't forget who the bigger consumers are!
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http://today.reuters.co.uk/Investing/MarketReportArticle.aspx?type=usMktRpt&storyID=2006-04-27T105607Z_01_L27004117_RTRIDST_0_MARKETS-STOCKS-US-EUROPE.XML

US stocks seen down; China ups rates, Fed awaited
Thu Apr 27, 2006 11:55 AM BST

LONDON, April 27 (Reuters) - U.S. stock index futures fell on Thursday as China's central bank raised interest rates, while markets also awaited Federal Reserve Chairman Ben Bernanke's testimony on the economic outlook.

The yen spiked towards this week's three-month high versus the dollar and the pan-European FTSEurofirst 300 shares index <.FTEU3> added to losses after China raised its benchmark one-year lending rate to 5.85 percent from 5.58 percent, effect from Friday.

"It will create some short-term noise in a (stock) market that's already looking to try and take some profits on anything related to China," said Mark Tinker, head of strategy at broker Execution in London.

"You are not going to get a collapse in demand out of China. This generally tends to reflect internal monetary conditions. Very often, it is a technical move. We have seen this happen many times since China has been growing," he said.

By 1030 GMT, Dow Jones futures were off 0.5 percent, Nasdaq futures lost 0.3 percent and S&P futures shed 0.4 percent.

Investors will also await clues on the likely pace of U.S. interest rate hikes as Fed Chairman Bernanke testifies before a Joint Economic Committee hearing on the economic outlook at 1400 GMT.

A series of strong economic data this week has stoked expectations the Fed will extend its rate-tightening campaign beyond May, when the central bank is widely expected to lift its funds rate for the 16th straight time, to 5.0 percent.

Corporate earnings are also in focus, with Dow Chemical (DOW.N: Quote, Profile, Research), Aetna <(AET.N: Quote, Profile, Research) and Bristol-Myers Squibb (BMY.N: Quote, Profile, Research) set to unveil first-quarter earnings.

Shares in oil firms will be eyed with results due from Exxon Mobil (XOM.N: Quote, Profile, Research), while the technology sector is in the spotlight as Microsoft Corp (MSFT.O: Quote, Profile, Research) reports third-quarter results after the close of trading.

On Wednesday, U.S. stocks ended higher, with the Dow industrials hitting a six-year high, buoyed by robust corporate earnings.

The latest string of results in a stronger-than-forecast earnings season outweighed investors' worries about rising interest rates after U.S. orders in March for durable goods such as airplanes and refrigerators surpassed expectations.