Europe Higher, Asia Lower

European markets were higher Tuesday with Germany's Dax reaching a near three-year high after higher than expected industrial production numbers; Asian markets were lower after a rally in the yen against the dollar

European stock markets were higher on Tuesday. In London, the Financial Times-Stock Exchange 100 index rose 44.80 points to 5025.20 as July Brent crude oil futures fell. Bonds rose on Greenspan assurances about low long term rates. Yields on 10-year gilts fell to 4.22% from 4.26% yesterday. There was little reaction to a report BRC retail sales index fell 2.4% year on year in May after skidding 4.7% in April. 86 FTSE stocks rose, 13 fell on turnover of 1,529,000,000 shares. Sterling was up at $1.8339. Diageo rose after agreeing to buy Bushmills whiskey brand. Shire Pharmaceuticals rose after Smith Barney initiated coverage with a "buy" recommedations. GW Pharmaceuticals plunged as U.K. regulators rejected company's appeal to win immediate approval for its cannabis-based Sativex drug for multiple sclerosis patients.

In Germany, the DAX Index surged 68.75 points to a near three-year high 4566.01 as German April industrial production rose more than expected 1.1%. 26 DAX stocks rose, only 4 fell on turnover of 116,855,000 shares. Yields on 10-year Bunds fell to 3.15% from 3.20% yesterday. RWE rose after UBS raised its price forecast on RWE shares 9.8% percent to 58 euros. Jenoptik rose on company plans to make acquisitions to help boost sales to about 1 billion euros after 2007. ALR rose after HypoVereinsbank Research raised it recommendation on the shares to "outperform" from "neutral". Comdirect Bank fell after company said it executed 11% fewer securities trades in May than April.

France's CAC 40 rose 34.27 points to 4180.74 as oil prices fell and the French budget deficit amounted to 42.25 billion euros in the January-April period, vs. 39.60 billion euros in the year-ago period. 34 CAC stocks rose, 6 fell on turnover of 106,118,800 shares. Yields of 10-year bonds fell to 3.16% from 3.22% yesterday. Ingenico rose after company named Amedeo d'Angelo CEO in shakeup. Lafuma rose after company said first quarter net surged 63%. Manutan International fell as first half profit dropped 5.4%.

Asian markets were lower on Tuesday. In Japan, the Nikkei 225 fell 53.17 points, or 0.5%, to 11217.45. Tokyo's Nikkei 225 average fell 53.17 points, or 0.5%, and the broader TOPIX dipped 4.11 points, or 0.4%, to 1141.26. Exporters led the fall after a rally in the yen against the dollar raised concern that the value of overseas sales will decline. Mitsubishi Motor dropped 2.1%, Nissan Motor slid 0.8%, and Honda Motor was 1.9% lower. Decliners outpaced advancers by 865 to 613. Trading volume on the Tokyo Stock Exchange's main section was 1.18 billion shares against Monday's 1.17 billion.

In Hong Kong, the Hang Seng slid 23.26 points, or 0.17%, to 13,837.29, led lower by China Mobile, and by property stocks after major banks raised their mortgage rates by a further 25 basis points. Decliners outpaced advancers 20 to 8. Approximately 258 million shares traded hands, down from the 265.8 million on Monday.

Canada's benchmark TSX/S&P closed flat, gaining 0.24 points, or 0.00%, to close at 9,654.21.

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