UNITED STATES

UBS outdid rivals thanks to strong investment banking revenues and shrinking client outflows, while Deutsche Bank held ground after a drop in loan loss provisions.

The euro hovered close to a two-month peak against the dollar on Tuesday, retaining support after last week's European bank stress tests revealed no horrors while increased demand for riskier assets weighed on the dollar.

World stocks hit a 2-1/2 month high on Tuesday while the euro held near a two-month peak versus the dollar as upbeat results from Swiss bank UBS added to a recent run of strong corporate earnings.

Strong equities and currency revenues drove UBS's second-quarter net profit well above forecasts despite choppy market conditions and client money withdrawals fell to their lowest level since early 2008.

Gold prices showed positive trends in Asian trade Tuesday mainly on a firm euro in an otherwise thin market. Gold for immediate delivery was seen trading at $1184.88 an ounce at 12.00 noon Singapore while U.S. gold futures for August delivery was at $1,184.2 an ounce at the same time.

BP Plc chief executive Tony Hayward will step down as head of the oil giant on October 1 and be replaced by fellow executive Robert Dudley.

Yahoo Japan, Japan's largest Internet portal site, appears set to adopt Google's search engine instead of teaming up with Microsoft like partner Yahoo Inc, media reported.

Asian stocks pulled back slightly from two-and-a-half month highs hit earlier on Tuesday after upbeat U.S. housing data, while the euro neared 2-month peaks on relief over stress tests on European banks.

Asian stocks rose to their highest in two and a half months on Tuesday, boosted by solid U.S. housing data, while the euro inched up toward two-month peaks on relief over stress tests on European banks.

Ask.com, the Internet search engine owned by IAC/InterActive Corp, is seeking some human help answering web surfers' questions.

State tax revenue is improving, but only slightly, and may not be enough to end steep spending cuts or replace the loss of assistance from the federal stimulus plan that expires in December, according to a report on Tuesday.

Oil steadied near $79 on Tuesday as forecasts see falling crude inventories and rising refined product stocks in the United States, continuing a trend that has helped keep prices in a $10 range for almost two months.

Gold gained on Tuesday in a thin market driven by a firm euro and a technical rebound as prices briefly hit the 100-day moving average, while jewelry makers stayed on the sidelines after recent purchases. Investors are turning their attention to a series of U.S. data that may set the tone for prices, which have dipped more than 6 percent after surging to a record $1,264.90 in early June. Silver also firmed, while strong equities underpinned platinum.

With the diamond flow becoming tight in global markets, Surat's diamond polishing units are now awaiting roughs from Zimbabwe, which recently got a reprieve from the KP scheme, which allowed the country to sell a portion of its diamond stocks.

BP Plc is expected to install an American known for diplomacy as chief executive, replacing Tony Hayward who has come under fire for his gaffe-prone handling of the worst oil spill in U.S. history.

Global stocks rose on Monday after U.S. data showed a pick-up in new home sales, reviving hopes for improvement in a tepid economic recovery, while the euro firmed against the dollar on increased risk tolerance.

Bank of America Corp on Monday appointed a former colleague of Sallie Krawcheck as its Merrill Lynch global wealth management unit's new chief investment officer.

Biotechnology company Genzyme Corp is weighing an informal takeover approach from France's Sanofi-Aventis but is not looking to sell the company, a source familiar with the situation said on Monday.

An auction of Ally Financial's Residential Capital has advanced into the second round, with some would-be buyers circling the assets, but a sale of the mortgage lender faces hurdles, sources familiar with the matter said.

Joshua Hochberg, a former top official in a U.S. Department of Justice criminal fraud unit, has been appointed to examine the bankruptcy of Washington Mutual Inc , the largest U.S. banking failure.

The Aussie dollar held on to support around 0.8940 during the Asian session despite a lower than expected second quarter Producer Price Index or PPI as its referred to.