FROM MORRISON SECURITIES PTY. LTD:

U.S. STOCK MARKETS

Stocks traded lower following weak economic signals from the euro zone and fresh concerns from China about slowing global growth. After rising to multiyear highs in recent days, major benchmarks extended their retreat into a third session Thursday. Sectors especially exposed to global growth, such as energy, materials and industrials, were the session's biggest decliners.

U.S. Steel slid 5.6%, while Freeport-McMoRan Copper & Gold tumbled 4%. Alcoa and Caterpillar led blue chips lower, each declining 2.7%. The preliminary composite purchasing managers' index for the 17-member euro zone fell to a three-month low of 48.7 in March, from 49.3 in February, compared with expectations for a slight increase.

Readings below 50 indicate contraction, and Thursday's data indicated output fell during the first quarter. Given that the euro-zone economy declined 0.3% in the fourth quarter, a second consecutive quarter of economic contraction would indicate a recession. European markets declined, with the Stoxx Europe 600 down 1.2% on signs of further contraction in the euro zone and Chinese economies.

EUROPEAN STOCK MARKETS

European stocks dropped for a fourth straight session Thursday, led by banks and resource companies, as weak manufacturing data in the euro zone and China added to concerns about global economic growth.

The Stoxx Europe 600 index closed down 1.2% at 265.49. The U.K.'s FTSE 100 index fell 0.8% to 5845.65, Germany's DAX closed down 1.3% at 6981.26, and France's CAC-40 index slid 1.6% at 3472.46.

Chinese manufacturing data set the negative tone, as the HSBC preliminary purchasing managers' index confirmed a slowdown in the world's second-largest economy. The index fell to a four-month low of 48.1 in March, compared with a final reading of 49.6 in February. Figures below 50 indicate a contraction. As a result, resources firms took a beating.

The Stoxx Europe 600 index for the sector closed down 3.4%. Randgold Resources sank 13% in London after a suspected military coup in Mali, where the company has operations. Fresnillo slid 6.7%, Vedanta Resources declined 4.8% and Rio Tinto dropped 3%, all in London.

Contributing to the gloom were weak euro-zone figures, which added weight to fears that the region is in recession. The Markit euro-zone purchasing managers' composite output index fell to a three-month low of 48.7 in a preliminary reading for March, down from 49.3 in February.

Signs of improvement in the U.S. labor market failed to lighten the mood. Initial jobless claims dropped by 5,000 last week to 348,000, the lowest level since February 2008, compared with expectations for a 4,000 rise.

Banks also dropped sharply, and the index for that sector slid 1.9%. In Frankfurt, Commerzbank fell 3.1%. In Paris, Societe Generale slid 3.1% and Credit Agricole fell 3%. In London, Royal Bank of Scotland Group declined 2.2% and Barclays shed 2.1%.

Spanish and Italian assets were under pressure again amid concerns about Spain's fiscal outlook and the sluggish euro-zone data. Italian banks posted losses, with Banco Popolare down 4.7%, Banca Monte dei Paschi di Siena off 3.4%, and UniCredit shedding 2.1%.

The FTSE MIB index slid 1.7% to 16450.68.

In Spain, Banco Bilbao Vizcaya Argentaria fell 2.65% and Banco Santander dropped 2.2%, while the benchmark IBEX 35 index dropped 1.6% to 8353.60. The yield on 10-year Italian government bonds rose 0.15 percentage point to 5.07%, while Spain's 10-year yield climbed 0.1 percentage point to 5.46%.

French luxury-goods company Hermes International bucked the trend, adding 2.3% after posting a 41% rise in net profit for 2011 and saying it will continue to invest in its production and distribution network over 2012.

ASIA-PACIFIC STOCK MARKETS

Asian stock markets ended mixed Thursday, with resource plays underperforming across the region after data showed Chinese manufacturing activity has likely slowed sharply this month.

The Shanghai Composite lost 0.3%, South Korea's Kospi shed 0.1%, and Hong Kong's Hang Seng Index fell 1.1%. Japan's Nikkei Stock Average was up 0.4% by the close, holding onto early gains ahead of the Chinese data release, while Australia's S&P/ASX 200 index pared its gains after the data finish 0.5% higher.

The data hit Chinese resource firms, with Aluminum Corp. of China Ltd., also known as Chalco, losing 0.8% in Hong Kong, and Angang Steel Co. down 2.1%.

Among Hong Kong-listed energy stocks, Cnooc Ltd. gave up 1.1%, and PetroChina Co. lost 1.1%, while Rio Tinto fell 1.0% in Sydney. In Seoul, Posco lost 1.3% and SK Innovation fell 1.2%.

The Australian dollar fell significantly on the Chinese data, dropping to $1.0393 against the greenback from $1.475 ahead of the release.

For Australia, whose resource-rich economy is highly on China's massive consumer market, the downside implications of slowing Chinese growth is huge.

Financial firms traded mixed across the region. Hong Kong-listed shares of Bank of China Ltd. lost 0.3%, while Agricultural Bank of China Ltd. traded down 1.1% ahead of its earnings report due later in the day, failing to get a lift from news that some of its branches would see a reduction to their reserve requirements.

Over in Tokyo, shares in Sumitomo Mitsui Trust Holdings Inc. rose 0.5% despite reports Japanese regulators were proposing their first-ever insider-trading fine for a major financial firm a unit of the top trust bank. The penalty is expected to be about $600.

And in Australia, gains for financial firms helped support the broader market. National Australia Bank Ltd. climbed 1.2%, and Australia & New Zealand Banking Group Ltd. put on 1%, while investment bank Macquarie Group Ltd. surged 3%. Also in Sydney, Sigma Pharmaceuticals jumped 5.7% after the firm swung to a profit in 2011, following two years of losses.

COMMODITIES

Copper closed 2% lower on the London Metal Exchange Thursday as renewed fears over global economic growth triggered a broad selloff across perceived risk assets, like commodities and equities.

The metal markets tumbled in line with U.S. and European stock markets, and the euro, after the latest Chinese and euro-zone economic data missed expectations, reigniting concerns over demand prospects for the industrial metals.

LME three-month copper closed at $8,290 a metric ton, down $165 on its previous close. The Euro Stoxx 50 index meanwhile closed 1.5% lower at 2530.22.

Crude oil futures fell 1.8% to settle at a one-week low of $105.35 a barrel Thursday on fears of a potential slowdown in oil demand in China, the world's second-biggest oil consumer.

Light, sweet crude oil for May delivery on the New York Mercantile Exchange settled $1.92 lower, at $105.35 a barrel. ICE May Brent crude was $1.06 a barrel lower at $123.14 a barrel in late trading.

Gold futures ended at a nine-week low Thursday, tracking other commodities and global stock markets in the wake of downbeat manufacturing data from China. Gold for April delivery fell $7.80, or 0.5%, to $1,642.50 an ounce on the Comex division of the New York Mercantile Exchange. That was gold's lowest settlement since Jan. 13.