April 1 (Bloomberg) -- Stocks in the U.S. and Europe rose, extending the biggest monthly rally for global equities since 2003, on speculation banks have grown more eager to lend and as investors bought March’s best-performers. Mark Carhart and Raymond Iwanowski, co-heads of Goldman Sachs Group Inc.’s quantitative-investment group and Global Alpha hedge fund, quit the firm.

TOP STORIES/MOST READ ON BLOOMBERG

Home Prices in 20 U.S. Cities Fell by a Record 19%

Home prices in 20 U.S. cities fell 19 percent in January from a year earlier, the fastest drop on record, as demand plummeted and foreclosures rose.

Mack Warns Morgan Stanley of ‘Difficult Year’ in 2009

Just when the monthlong rally in bank shares is signaling a thaw in the credit freeze that gripped the world’s financial capitals since August 2007, some of the securities industry’s most experienced executives are predicting no end to Wall Street’s troubles.

Goldman Hedge-Fund Managers Carhart, Iwanowski Quit

Mark Carhart and Raymond Iwanowski, co-heads of Goldman Sachs Group Inc.’s quantitative-investment group and Global Alpha hedge fund, quit the firm.

Barclays in Exclusive Talks to Sell IShares to CVC

Barclays Plc, the U.K.’s third-largest bank, said it’s in exclusive talks to sell the iShares exchange-traded funds unit to CVC Capital Partners Ltd. The sale price may be about 3 billion pounds ($4.3 billion), people familiar with the negotiations said.

MAIN ECONOMIC RELEASES Japan’s Tankan Large Manufacturers Index Seen Falling Australian February Retail Sales Seen Dropping 0.5% From January Australian Feb. Building Approvals Seen Rising 1.5% From January Australia’s Performance of Manufacturing Index for March Is Due South Korea’s Exports Seen Dropping 21.5% in March Vs Year Ago South Korea March Consumer-Price Inflation Seen Slowing to 3.9% China Manufacturing Index for March Due to Be Released by CLSA Indonesia’s Exports Seen Dropping 36.6% in February Vs Year Ago Indonesia’s Inflation Rate Seen Slowing to 7.96% in March Thailand’s March Consumer Prices Seen Falling 0.4% Vs Year Ago India’s Exports, Imports Report for February Is Due for Release

MAIN ANALYST UPGRADES/DOWNGRADES *ARCELORMITTAL RESUMED ‘BUY’ AT BANK OF AMERICA *CREDIT SAISON CUT TO ‘NEUTRAL’ AT DAIWA INSTITUTE *GLOBAL SOLAR STOCKS MAY BENEFIT FROM JAPAN STIMULUS: M. STANLEY *NGK INSULATORS CUT TO ‘NEUTRAL’ AT CREDIT SUISSE

ASIAN MARKETS

The Nikkei 225 futures contract due in June rose 90 points to 8,220. The Hang Seng April contract gained 156 to 13,556. The S&P/ASX 200 Index futures due June advanced 26 to 3,592 at 6:59 a.m. in Sydney.

Stocks Gain as Global Equities Complete Best Month Since 2003

Stocks in the U.S. and Europe rose, extending the biggest monthly rally for global equities since 2003, on speculation banks have grown more eager to lend and as investors bought March’s best-performers.

Treasuries Head for Worst First Quarter Since 1996 on Supply

Treasuries headed for their worst yearly start since 1996 as record debt sales and the prospect of increased issuance dampened demand for government securities.

Yen Falls, Posts Quarterly Drop on Japan’s Economic Slump

The yen fell to a three-week low against the dollar and posted its biggest quarterly loss since 2001 after Japan’s Prime Minister Taro Aso said the world’s second-largest economy is still in a state of crisis.

European Stocks Advance, Post First Monthly Gain Since August

European stocks rose, pushing the Dow Jones Stoxx 600 Index to the first monthly increase since August, as Marks & Spencer Group Plc posted sales that beat analysts’ estimates and basic- resource producers climbed.

German Notes Gain in Quarter as Inflation Slows to Record Low

German government notes rose, advancing for a third consecutive quarter, after the country’s unemployment rate climbed to the highest level in more than a year and euro-region inflation slowed to a record.

Oil Rises on Stock Rally, Caps Biggest Monthly Gain Since May

Crude oil rose, capping its biggest monthly gain since May, as equities increased and a weaker dollar enhanced the appeal of commodities.

Gold Prices Rise in New York as Dollar Weakens; Silver Declines

Gold rose in New York, capping a second straight quarterly gain, as a weaker dollar boosted the metal’s appeal as an alternative asset. Silver fell.

HIGHLIGHTS FROM NEWSPAPERS

Madagascar Interim Government Freezes Mine Contracts, AFP Says

Madagascar’s interim government froze all mining contracts in a bid to seek higher royalties from foreign companies, Agence France-Presse said.

Japan to Offer $22 Billion in Trade Aid at Summit, Nikkei Says

Japan will pledge $22 billion in trade financing for developing countries at the Group of 20 summit in London, Nikkei English News reported, without saying where it got the information.

Last Updated: March 31, 2009 17:14 EDT