FROM MORRISON SECURITIES PTY LTD.:

U.S. STOCK MARKETS

U.S. stocks fell as concerns about China's economic growth gave pause to a rally that pushed benchmarks to their highest levels in years. Stocks opened lower Tuesday and held losses in afternoon trading.

The Dow Jones Industrial Average declined 51 points, or 0.4%, to 13188. If that lasts throughout the day, Dow industrials would record just their second loss in the last 10 sessions. The Standard & Poor's 500-stock index declined 5 points, or 0.3%, to 1405, and the Nasdaq

Composite lost 10 points, or 0.4%, to 3067. Both benchmarks closed at multiyear highs Monday. Growth-sensitive energy and materials stocks such as Caterpillar, down 2.4%, Alcoa, down 1.9%, and United Technologies, down 1.4%, led the market lower. Bank of America rose 2.3% to lead Dow advancers.

The market declines came after an executive from Australia mining company BHP Billiton warned that China's demand for iron ore will flatten as the world's second-largest economy cools.

Earlier this year, China cut its 2012 gross domestic product growth target to 7.5%, an eight-year low. Additionally, China raised domestic gasoline and diesel prices for the second time this year, prompting concerns that higher prices could weigh on Chinese consumers. In

U.S. economic data, construction of single-family homes fell 9.9% in February, the largest drop in a year, while multifamily homes posted a 21.1% gain. Permits for new construction reached their highest levels in nearly 3 1/2 years last month. The data weighed on shares of home builders such as Hovnanian Enterprises, down 4.8%, and M/I Homes, down 5%.

EUROPEAN STOCK MARKETS

Car and resource stocks led losses in European markets, amid fresh worries about a slowdown in China. The Stoxx Europe 600 index closed down 1.1% at 268.96.

The U.K.'s FTSE 100 index fell 1.2% to 5891.41, Germany's DAX dropped 1.4% to 7054.94 and France's CAC-40 index declined 1.3% to 3530.83. Auto stocks took a battering, and the Stoxx Europe 600 index for the sector ended down 4%.

Traders cited comments from an official from the Chinese Association of Automobile Manufacturers who said auto sales will miss its forecasts in 2012.

Among individual stocks in the sector, BMW slid 5%, while Volkswagen and Daimler each lost 4.4%. Basic-resource plays tracked key metals prices lower after Ian Ashby, the president of BHP Billiton's iron ore division, said demand for iron ore from China, the world's largest consumer of base metals, is flattening.

The Stoxx Europe 600 basic resources index closed 3.6% lower. Heavyweights BHP Billiton and Rio Tinto declined 4.1% and 4.2%, respectively, in London. Steelmaker ArcelorMittal fell 3.6% in Amsterdam.

A rise in fuel prices added to wider concerns about China. It lifted its domestic gasoline and diesel prices for the second time this year, raising concerns for Chinese consumers. In the U.S., an unexpected drop in U.S. housing starts did little to help the mood.

Deutsche Boerse dropped 1.3% after saying it will challenge the European Union's prohibition of its planned merger with NYSE Euronext at the EU Court in Luxembourg.

Midcap Cable & Wireless Worldwide surged 8.9% in London. India's Tata Communications will make a formal cash offer for the company, people familiar with the matter told Dow Jones. This sets the stage for a bidding war with U.K. telecom giant Vodafone, which expressed an interest in the company earlier this month. Glencore International retreated 1.6% as the commodities trader announced its deal to buy Canadian grain trader Viterra.

ASIA-PACIFIC STOCK MARKETS

Asian stock markets ended lower Tuesday, with resource stocks hit by a decline in commodity prices and comments from an executive at mining giant BHP Billiton that Chinese demand growth was slowing.

China's Shanghai Composite fell 1.4%, Hong Kong's Hang Seng Index fell 1.1%, South Korea's Kospi fell 0.2% and Taiwan's Taiex was down 0.9%. Japanese markets were closed for a holiday.

Prices of commodities such as gold, copper and crude-oil weakened as the U.S. dollar strengthened against major rivals.

Meanwhile, a BHP executive said Tuesday that Chinese demand for iron ore in particular was flattening out. Aluminum Corp. of China Ltd. shed 2.6% and Jiangxi Copper Co. lost 2.4% in Hong Kong; in Shanghai, they gave up 2.5% and 2.6%, respectively.

In Seoul, Korea Zinc shed 2%. Shares of China Petroleum & Chemical Corp. tumbled 3.9% and PetroChina gave up 1.2% in Hong Kong.

In Shanghai, each fell 0.5%. The drop came despite China's decision Monday to raise retail gasoline and diesel prices by 6.4% and 7%, respectively.

Shares of Hong Kong real-estate group Sun Hung Kai Properties retreated 2.4%, coinciding with news that an executive director with the company was arrested on allegations of bribery.

Some of the region's technology shares advanced after Apple Inc. announced plans Monday to return some of the massive cash balances on its books to shareholders. In Seoul, shares of LG Display rose 0.7%, while Samsung Electronics, which hit an all-time high during the session, finished 0.6% higher.

COMMODITIES

Base metals closed broadly lower on the London Metal Exchange Tuesday, pressured by a stronger dollar and widespread risk aversion, with lead seeing the most marked losses as automated selling was sparked by a move below a key technical level.

At the close, the LME's flagship three-month copper contract was 1.6% lower at $8,430 a metric ton, while lead closed 4.3% lower at $2,013/ton, having earlier slumped 4.5% to a one-month low at $2,011/ton.

While lead's weakness Tuesday was partly a reflection of broader risk aversion and a lower copper price, sentiment toward the metal was further soured by a 1,475-metric-ton, or 0.4%, increase in LME lead inventories Monday.

Oil futures fell Tuesday as Saudi Arabian officials suggested the world's largest crude exporter will try to rein in rising prices.

Saudi Arabia late Monday said it would work with other oil producers to restore oil prices to levels that are fair for producers, consumers and the oil industry, according to a statement from the Saudi cabinet posted by the country's official news agency.

Light, sweet crude for April delivery settled $2.48, or 2.3%, lower at $105.61 a barrel on the New York Mercantile Exchange. The April contract expired at the close of trading Tuesday, and the more heavily traded May contract settled $2.49, or 2.3%, lower at $106.07 a barrel.

Front-month ICE Brent crude for May delivery lost $1.59 per barrel, or 1.26% to $124.12. Gold prices fell as the dollar strengthened and traders continued to weigh the impact of slower Chinese economic growth and potential declines in demand from top gold consumer India.

The most actively traded gold contract, for April delivery, fell $20.30, or 1.2%, to settle at $1,647.00 an ounce on the Comex division of the New York Mercantile Exchange