.Thomson Financial Europe AM at a glance share guide: Shares lower, oil surges

LONDON (Thomson Financial) - US SUMMARY: Stocks dip, oil shoots up Index Change Percent change *DJIA 11842.69 -220.40 -1.83 *Nasdaq 2406.09 -55.97 -2.27 *S&P 500 1317.93 -24.90 -1.85 Nymex crude for July $134.62 +$2.69 10 year US *Friday's close STOCKS: Stocks capped a difficult week with steep losses Friday amid escalating worries about the financial and automotive sectors and a rebound in oil prices. The major indexes fell by more than 1 1/2 percent on the day, and the Dow Jones industrial average gave up more than 200 points to end at its lowest level in three months.

A Merrill Lynch downgrade of regional banks added to the market's initial anxiety, which ballooned Thursday when Citigroup Inc. warned of significant debt markdowns for the second quarter, Washington Mutual Inc. announced 1,200 job cuts and Moody's Investors Service decided late in the day to downgrade the two biggest bond insurers.

FOREX: The dollar fell on Friday as oil futures rebounded and downgrades of automakers and the financial sector underscored troubles challenging the nation's economy.

The euro bought $1.5625 in late New York trading, up from its level of $1.5499 on Thursday. The British pound rose to $1.9771 from $1.9739.

OIL: Oil futures rebounded Friday on unease over Middle East stability and a growing doubt that China's government will be able to curb the country's appetite for fuel by pushing prices higher.

METALS: In precious metals, gold futures fell 50 cents to settle at $903.70 an ounce on the Nymex. Other metals traded mixed. July silver added 7.3 cents to settle at $17.397 a pound on the Nymex, while July copper rose 5.25 cents to settle at $3.832 a pound.

Events: May Chicago Fed National Activity Index ASIA SUMMARY: Stocks lower after Wall Street fall, oil higher Index Change Pct change Nikkei 225 13853.90 -88.18 -0.63 (0335 GMT) Straits Times 2974.61 -27.20 -0.91 (0355 GMT) Hang Seng 22609.09 -136.51 -0.60 (0341 GMT) Seoul Composite 1711.37 -19.63 -1.13 (0355 GMT) BSE Sensex 14423.05 -148.24 -1.02 (0430 GMT) usd-yen 107.28 (Intra-day trade) 10-year JGBs 4.17 percent -0.04 (Intra-day trade) Brent North Sea crude for August $135.08 usd +22 cents (Intra-day trade) STOCKS: Asia shares were lower in early trade on Monday after Wall Street's Friday fall.

China A-shares finished the morning lower as profit-taking hit oil refiners following Friday's surge on the government's snap decision to hike gasoline and diesel prices. Australian shares were trading lower though losses had been pared as investors bought oversold stocks across sectors.

BONDS: Japanese government bonds finished the morning session higher on Monday as investors shifted funds back to safe haven government bonds due to emerging uncertainties about the global stock market, stemming from renewed uncertainties about the U.S. financial sector and economy.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.17 percent from 4.21 percent late Thursday.

FOREX: The U.S. dollar was trading mixed against major currencies in Sydney on Monday, with market attention clearly fixed on this week's Federal Open Market Committee meeting.

While the two-day meeting, which starts Tuesday, is not expected to result in any change to the Federal Reserve's funds target rate, now at just 2.0 percent, the market will be looking for hints in the accompanying statement on Wednesday about the possibility of a return to interest rate hikes later in the year.

At 0030 GMT the dollar was at 107.34 yen from 107.28 late in New York on Friday while the euro was at $1.5613 from $1.5605.

OIL: World oil prices rose in Asian trading on Monday after Saudi Arabia said at a weekend summit that it had raised output,and said speculators were partly to blame for higher prices.

New York's main oil futures contract, light sweet crude for August delivery,was 29 cents higher at $135.65 per barrel. on Friday. Brent North Sea crude for August was 22 cents higher at $135.08 a barrel after rising $2.86 to settle at $134.86 per barrel on Friday in London.

METALS: Copper rose to a month high in London on Friday after inventories fell and the dollar weakened, encouraging fund buying of the red metal. At 11:58 a.m. Friday, London Metal Exchange (LME) copper for three-month delivery was at $8,415 a tonne, up from $8,330 at the close on Thursday.

Gold steadied near $900 per ounce on Friday as rising inflation fears and renewed weakness in the U.S. dollar kept the precious metal supported near the key psychological level.

EVENTS: Japan April-June corporate outlook survey Japan May supermarket sales Singapore May CPI Hong Kong Q1 current account Hong Kong's Dickson Concepts yr to March results Taiwan May unemployment India's Tata Power FY results E.U. rules on proposed acquisition by E.ON of Endesa Europa, Enel's Viesgo E.U. rules on acquisition by Rewe of ADEG stake increase U.S. May Chicago Fed National Activity Index EUROPE SUMMARY: Shares lower, oil surges Index Change Percent change *FTSE 5620.80 -87.60 -1.53 *DAX 6578.44 -142.73 -2.12 *CAC 4509.27 -82.12 -1.79 pound-dollar 1.9752 +0.0021 (Intra-day) euro-dollar 1.5607 +0.0119 (Intra-day) Brent crude(August) $135.95 +$3.95 (Intra-day) *Friday's close STOCKS: UK blue chips closed lower Friday, having extended losses in afternoon deals as Wall Street fell on the back of escalating worries about the financial sector and a rally in oil prices, with weakness seen among banks in London.

German shares plummeted to their lowest level since April, mainly impacted by higher oil prices and the expiration of stock options, index options and index futures as well as a lower performance on Wall Street.

Paris share prices ended lower Friday after hesitant morning trade gave way to a sharp afternoon drop in line with Wall Street, where investors grew nervous about a renewed rally on oil prices and more gloomy signs about the financial sector.

FOREX: The dollar remained weak, particularly against the euro, after ratings agency Moody's downgraded the bond insurers Ambac and MBIA, and after the emergence of fresh geopolitical tensions in the Middle East.

The euro received a boost on views that the European Central Bank will go ahead and raise interest rates by a quarter point to 4.25 percent.

Meanwhile, pound was somewhat stronger, riding on the positive momentum from strong retail sales figures released on Thursday. These showed sales rose 3.5 percent in May from April, the fastest rate of growth since records began in 1986.

BONDS: European government bonds continued to build on Friday morning's gains, benefiting from a rise in safe haven flows as market players sought to divert funds away from falling equity markets.

In the UK, gilts were outperforming their European counterparts, reversing Thursday's losses on flight-to-safety flows and as market players pared back expectations for interest rate rises.

OIL: Oil prices stormed higher on Friday as OPEC members hit out at consumer demands for more crude ahead of a high-level weekend meeting in the Saudi city of Jeddah to discuss rocketing fuel costs.

News that China would hike domestic oil prices added considerable weight to the downward pressure, on the initial view that Beijing's move would curtail demand in its booming economy.

London's Brent North Sea crude for August jumped $3.95 to $135.95 per barrel, compared with its record peak of $139.32 on Monday.

METALS: Gold steadied near $900 per ounce on Friday as rising inflation fears and renewed weakness in the U.S. dollar kept the precious metal supported near the key psychological level. At 9:44 a.m., spot gold was trading at $899.25 per ounce against $902.20 per ounce Thursday.

Among other precious metals, platinum was trading up at $2,052 per ounce against $2,048 per ounce Thursday. Palladium slipped to $467 per ounce from $473 per ounce.

In industrial metals, copper rose to a month high in London on Friday after inventories fell and the dollar weakened, encouraging fund buying of the red metal.

EVENTS: UNITED KINGDOM Rightmove June house price index Aggreko trading statement BENELUX Belgian June business confidence indicator. Forecast -2.5 versus -1.6 Deadline for ASMI to reach compromise with shareholders Colruyt FY results FRANCE Provisional June manufacturing PMI. Forecast 51.0 versus 51.5 Provisional June services PMI. Forecast 51.0 versus 50.5 GERMANY Provisional June manufacturing PMI. Forecast 53.2 versus 53.6 Provisional June services PMI. Forecast 53.3 versus 53.8 Bundesbank Monthly report Ifo June business climate index. Forecast 102.5 versus 103.5 Ifo June business assessment index. Forecast 109.1 versus 110.1 Ifo June business expectations index. Forecast 96.3 versus 97.3 Siemens Media summit with CEO Loescher, London (day 1 of 2) GREECE Coca-Cola HBC AGM Terna Energy AGM ITALY Review of S&P/Mib index SWITZERLAND Swiss govt June economic forecast Swiss KOF spring economic forecast EASTERN EUROPE Hungary Central bank to set interest rates Conference on euro (1130 GMT, Czech central bank governor Tuma, Slovak central bank governor Sramko to attend) EUROPEAN UNION/EURO ZONE Euro zone provisional June manufacturing PMIs. Forecast 50.2 versus 50.6 Euro zone provisional June services PMI. Forecast 50.5 versus 50.6 Euro zone provisional June composite PMI. Forecast 50.7 versus 51.1 EU rules on proposed acquisition by E.ON of Endesa Europa, Enel's Viesgo EU rules on acquisition by Rewe of ADEG stake increase

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