Financial Market Summary Wednesday, June 18, 2008

U.S. stocks fell on Wednesday, with the S&P down more than 1% percent. Financial
stocks dominated the declining sectors accounting for the ten largest percentage
falls on the Dow Jones STOXX 50, with Societe Generale down 1.35%. Deutsche Boerse
was also down 1.67 percent.

Morgan Stanley Dow Jones industrial average fell 114.63 points, or 0.94 percent,
at 12,045.67. The Standard & Poor's 500 Index was down 13.29 points, or 0.98 percent,
at 1,337.64. The Nasdaq Composite Index was down 26.20 points, or 1.07 percent,
at 2,431.53.

U.S. crude oil stocks fell by 1.2 million barrels last week, against analyst
expectations for a fall of just 700,000 barrels, marking the fifth weekly
inventory decline in the world's largest energy consumer. Gasoline stocks fell
against market expectations in the week to June 13, dropping by 1.2 million barrels
against calls for a rise of 1.1 million barrels.

Meanwhile, distillates, including heating oil, increased by 2.6 million barrels,
far more than the 1.5 million barrel rise expected. The refinery run rate increased
to 89.3 percent of their operable capacity from 88.6 percent the previous week,
against analyst predictions for a 0.3 percentage point rise.  The U.S. Energy
Information Administration.

Shares of regional banks slumped Wednesday with Fifth Third Bancorp. plunging to a
13-year low after the Cincinnati-based bank said it will slash its dividend and raise
$2 billion to shore up its capital position.

Several credit ratings agencies moved to downgrade the bank's debt and equity ratings
following the announcement. Regional banks also fell on losses in the broader
financial sector after Morgan Stanley earlier reported second-quarter revenue that
fell short of Wall Street's expectations.

The pound softened somewhat after the publication of the minutes Markets have turned
pessimistic on the pound's future, as the longer inflation keeps the BoE from cutting
rates, the deeper the economic downturn will be.

The euro, meanwhile, has fallen to daily lows against the dollar as a lack of
economic data on either side of the Atlantic has left trading sensitive to technical
flows.  The European Central Bank is widely expected to increase interest rates next
month, although policymakers are now trying to rein in expectations of a series of
hikes. U.S. policymakers have similarly suggested rates may need to raised, although
reports this week have suggested the Federal Reserve remains more concerned with
lower growth than price pressures.

Asian stocks mostly higher, led by rebound in the China market.

Oil dipped below $134 a barrel in Asian trade on Wednesday ahead of an expected
output increase by key producer Saudi Arabia.

The Shanghai Composite Index closed up 5.2 percent at 2,941.11 as investors regarded
the index as having been oversold. Speculation of imminent government intervention
to support the stock market, which has fallen over 50 percent since its highs last
October, also supported the rise.

"Impressive gains in Chinese shares boosted overall sentiment towards the close,"
said Park Seok-hyun, an analyst at Eugene Investment & Securities in Korea.

The KOSPI closed up 1.3 percent, the biggest percentage gain in nearly three weeks,
at 1,774.13.

"The rebound in the Chinese stock markets today helped improve overall market
sentiment in Hong Kong," said Castor Pang, strategist at Sun Hung Kai Financial.

The Hang Seng index finished with a gain of 1.16 percent at 23,325.80, led by a
rally in oil refiner China Petroleum & Chemical Corp (Sinopec) on optimism
about its future earnings.

Gains in resource stocks also led to a higher close in the Australian market after
a see-saw session. Data from China showing that investment in fixed assets in the
country's urban areas rose 25.6 percent in the first five months of the year
compared to a year earlier, supported the view that the country's appetite for raw
materials will keep commodity prices stronger for longer. Markets are going to
continue to be volatile.

Gold steadied near $895/oz in New York as a one-week high on Wednesday as a firmer
tone in crude oil and the dollar offset continuing fears over rising inflation
levels. Gold has been well supported by concerns over rising inflation, as the
precious metal is used as a hedge against the dangers of higher fuel and food costs.

However, gold prices may have been capped on Wednesday by a stronger tone in the U.S.
dollar and a dip in the price of crude oil. The precious metal tends to trade
counter to the dollar, as it serves as an alternative asset to the world's
predominant reserve currency.