April 3 (Bloomberg) -- U.S. stocks fell the first time in three days as reduced economic forecasts from the Federal Reserve and International Monetary Fund overshadowed gains in energy companies and retailers. Gold rose for the first time in a week on speculation the dollar's rally versus the euro will stall.

TOP STORIES/MOST READ ON BLOOMBERG

Bernanke Says U.S. Economy May Slip Into a Recession

Federal Reserve Chairman Ben S. Bernanke acknowledged for the first time that a U.S. recession is possible because homebuilding, employment and consumer spending will deteriorate.

Manhattan Condo, Co-op Sales Decline Most in 18 Years

Manhattan apartment sales plunged the most in 18 years in the first quarter as buyers faced the prospect of a recession and job cuts at Wall Street securities firms.

Money Funds Rise to $3.5 Trillion; Some Fees Waived

Investors are so scared of stocks and bonds that they have stashed a record $3.51 trillion in U.S. money-market mutual funds even as managers including Fidelity Investments waive fees to keep yields from falling to zero.

IMF Cuts Global Forecast on Worst Crisis Since 1930s

The International Monetary Fund cut its forecast for global growth this year and said there's a 25 percent chance of a world recession, citing the worst financial crisis in the U.S. since the Great Depression.

MAIN ECONOMIC RELEASES TODAY Figures are based on Bloomberg surveys of economists:

Indonesia Seen Keeping Benchmark Interest Rate Unchanged at 8% Malaysia's February Exports Seen Increasing 12.1% Vs Year Ago Australia's Services Industry Index for March to Be Released

MAIN ANALYST UPGRADES/DOWNGRADES *CHIYODA CUT TO `REDUCE' AT NOMURA *BANK OF AYUDHYA CUT TO `BUY ON WEAKNESS' AT TRINITY *TOP GLOVE RAISED TO `OUTPERFORM' VS `MARKET PERFORM' AT RHB *SC ASSET RAISED TO `BUY' FROM `TRADING BUY' AT TRINITY

ASIAN MARKETS

The Nikkei 225 futures contract due in June rose 105 points to 13,260. The Hang Seng Index futures for April gained 571 to 23,801. The S&P/ASX 200 Index futures due in June advanced 27 to 5,590 at 6:32 a.m. in Sydney.

U.S Stocks Retreat on Recession Concern; GE, Caterpillar Fall

U.S. stocks fell for the first time in three days as reduced economic forecasts from the Federal Reserve and International Monetary Fund overshadowed gains in energy companies and retailers.

U.S. 2-Year Notes Fall on Jobs Gain, Bernanke Bailout Defense

Treasury two-year notes declined, pushing yields to a five- week high, after a report showed U.S. companies unexpectedly added workers and Federal Reserve Chairman Ben S. Bernanke eased concern about credit markets.

Yen Falls as Bernanke Eases Concern Credit Losses Will Deepen

The yen fell against all of the most actively traded currencies after Federal Reserve Chairman Ben S. Bernanke said he didn't ``anticipate'' having to rescue another Wall Street firm, encouraging investors to buy higher-yielding assets funded by cheap loans in Japan.

European Stocks Advance; Barclays, Axa, BHP Billiton Lead Gains

European stocks rallied for a second day, led by banks and insurers, as investors speculated financial firms will weather credit-market losses and a U.S. report showed an unexpected increase in jobs.

European Government Bonds Fall as Stock Gains Curb Debt Demand

European bonds fell for a second day as gains in stock markets around the world curtailed investor demand for the relative safety of government securities.

Oil Rises, Gasoline Surges to Record on U.S. Fuel-Supply Drop

Crude oil rose more than $3 a barrel and gasoline surged to a record after an Energy Department report showed that U.S. supplies of the motor fuel fell a third week.

Gold Rises as Dollar Rally Against Euro May Stall; Silver Gains

Gold rose for the first time in a week on speculation the dollar's rally against the euro will stall. Silver also gained.

HIGHLIGHTS FROM NEWSPAPERS

China and Syria Sign Deal to Set Up Oil Refinery, SANA Reports

China National Petroleum Corp. signed an agreement with the Syrian Ministry of Petroleum and Mineral Resources to set up an oil refinery in Deir Azzour in Syria, The Syrian Arab News Agency reported today, citing Syrian Prime Minister Naji Otri.

Last Updated: April 2, 2008 16:00 EDT