FROM MORRISON SECURITIES PTY. LTD.

U.S. STOCK MARKETS

Stocks were dragged down for their worst one-day loss in about six weeks by tumult over the Greek bailout, disappointing readings on the U.S. economy and a downgrade of nearly three dozen Italian banks.

Stocks fell at the open and meandered almost all day Friday, but ended on a brief rally that brought the Dow's losses back under 100 points.

The Dow Jones Industrial Average closed down 89.23 points, or 0.69%, at 12801.23. The Standard & Poor's 500-stock index lost 9.31 points, or 0.69%, to 1342.64, and the Nasdaq Composite lost 23.35 points, or 0.8%, to 2903.88.

The losses were the worst day for the stock market since Dec. 28, interrupting a quiet rally that has brought each of the major indexes up about 20% in the last four months.

All 10 of the S&P's sectors were lower, led down by materials and energy. Among blue chips, Alcoa declined 35 cents, or 3.3%, to $10.29 and Dupont dropped 91 cents, or 1.7%, to 51.15.

Euro-zone finance ministers didn't approve a second bailout that Greece needs to stay afloat, saying the Greek Parliament must first approve the austerity measures before they will sign off on the loan deal. The Greek parliament is debating the measures Sunday ahead of a vote.

The U.S. trade deficit in December was $48.8 billion, slightly wider than the $48.5 billion expected by economists. And the University of Michigan's consumer-sentiment survey for February came in at 72.5, weaker than the 75 reading expected by economists.

Stocks gyrated in the afternoon when Standard & Poor's downgraded credit ratings on 34 of the 37 Italian banks it covers, citing its previous downgrade of Italy's sovereign credit and its views on the banking sector there. In corporate news, United Parcel Service said it was boosting its quarterly dividend 9.6%, to 57 cents a share, saying cash flow in 2012 is expected to be strong. The shipping company's stock rose 12 cents, or 0.2%, to 76.69.

LinkedIn rallied 13.57, or 17.8%, to 89.96 after the company reported better than expected fourth-quarter earnings and revenue, and provided an upbeat outlook for the current quarter and the year. NYSE Euronext reported fourth-quarter results that were slightly above estimates, and was upbeat about 2012 despite a challenging near-term outlook for trading volume and currencies. The stock ended the day up 1.25, or 4.5%, at 28.94.

EUROPEAN STOCK MARKETS

European stock markets ended lower Friday, with banks driving losses as uncertainty over Greece intensified after euro-zone finance ministers held off on approving Greece's second bailout late the previous day.

The Stoxx Europe 600 index closed down 0.9% at 261.24, ending the week 1.3% lower. European stocks took another leg lower in afternoon trading after media reports said a Greek junior coalition party leader announced his party will vote against new austerity measures.

Euro-zone finance ministers demanded late Thursday that the Greek parliament ratify austerity measures before they approve another aid tranche needed to prevent a default in March.

Among other demands, the finance ministers want political leaders of the coalition to provide details of EUR325 million in additional cuts.

The Athens General Index sank 3.2% to 797.35, with National Bank of Greece tumbling 9.5%. The negative mood on European bourses was further boosted after a preliminary reading of a gauge of consumer sentiment in the U.S. unexpectedly fell to 72.5 in February from 75 in January.

Banks led the charge lower, with Commerzbank AG and Deutsche Bank AG off 5.2% and 4% respectively, pulling the German DAC 30 index down 1.4% to 6,692.96.

The German index closed Thursday at its 2012 high. Losses for the French CAC 40 index accelerated through Friday, with the index closing down 1.5% at 3,373.14. Societe Generale SA sank 7.5%, BNP Paribas was down 4.1% and Credit Agricole SA shed almost 5%.

CAC-40 heavyweight Total SA lost 1.4% as commodity prices fell, with crude oil futures under pressure. Bucking the negative trend, Alcatel-Lucent surged 12.1%. The French telecoms-equipment maker said it swung to a EUR1.1 billion net profit in 2011 from a EUR334 million loss in 2010.

Miners fell as precious and base metals prices declined. Evraz PLC and Anglo American PLC both fell around 4%, Kazakhmys PLC declined 4.5%, BHP Billiton PLC fell 2.7% and Rio Tinto PLC slipped 1.1%. The U.K.'s FTSE 100 index fell 0.7% to 5,852.39.

ASIA-PACIFIC STOCK MARKETS

Most Asian markets closed lower Friday after euro-zone finance ministers withheld approval for a second bailout in Greece, calling for the ratification of recently approved austerity measures before more bailout funds would be released.

South Korea's Kospi fell 1.0% to 1993.71, Japan's Nikkei Stock Average shed 0.6% to 8947.17, and Hong Kong's Hang Seng Index fell 1.1% to 20,783.86.

China's Shanghai Composite rose 0.1% to 2351.98. Financials were mostly lower across the region following the latest developments in Greece.

In Hong Kong, Agricultural Bank of China tumbled 3.4%, Bank of Communications slumped 5.1%, while China Citic Bank and Ping An Insurance Group each dropped 2.0%. Among Tokyo-listed banks, Sumitomo Mitsui Financial Group Inc. fell 2.4%, Mitsubishi UFJ Financial Group dropped 2.8% and Daiwa Securities Group lost 2.1%. Japanese auto makers were weaker.

Toyota Motor fell 2.2%, Honda Motor lost 1.8% and Suzuki Motor declined 1.1%. On the upside, shares of Toshiba rose 1.5% on news the U.S. has approved the construction of its first new nuclear plant in some three decades, with Toshiba's Westinghouse Electric subsidiary set to build the plant. In Seoul, Samsung Electronics declined 2.0%, LG Electronics slumped 3.9% and Hyundai Motor dropped 1.1%.

COMMODITIES

Copper closed more than 3% lower on the London Metal Exchange Friday as worries over Greece were reignited, driving commodities, regional equity markets and the euro deep into the red.

LME three-month copper ended the session at $8,481 a metric ton, down $274 on Thursday's PM kerb close. Zinc was among the worst performers Friday, shedding 3.8% of its value.

Crude-oil futures prices fell Friday in line with broader market declines as the International Energy Agency cut its estimates for global oil demand this year.

Light, sweet crude for March delivery settled $1.17, or 1.2%, lower at $98.67 a barrel on the New York Mercantile Exchange, ending the run of three-straight session of gains. Brent crude on the ICE futures exchange fell $1.22 to $117.47 a barrel.

Prices fell as the IEA cut its oil-demand growth forecast for 2012 by 0.3 million barrels a day and said the market has enough flexibility to handle the loss of Iranian oil. Gold settled in negative territory as uncertainty over Greece's future saw market participants move to cash ahead of the weekend. The most-actively traded contract, for April delivery, settled down $15.90, or 0.9%, at $1,725.30 a troy ounce on the Comex division of the New York Mercantile Exchange. Gold futures were down 1.2% for the week.