FROM MORRISON SECURITIES PTY. LTD.

U.S. STOCK MARKETS

U.S. stocks finished mostly lower Wednesday after a weak reading on U.S. private-sector hiring added to concerns over a worsening European economy. The Dow Jones Industrial Average lost 10.75 points, or 0.08%, to 13268.57 after declining as many as 87 points in early trading. The Standard Poor's 500-stock index gave up 3.51 points, or 0.25%, to 1402.31, while the Nasdaq Composite edged up 9.41 points, or 0.31%, to 3059.85.

Leading the losses were energy and financial stocks, which are more sensitive to signs of economic improvement and deterioration. Bank of America lost 1.8% and J.P. Morgan Chase fell 1.3%.

Alcoa led the Dow decliners, shedding 2.4%, while Chevron and Exxon Mobil were off 1.2% and 1% respectively. The two oil giants were the heaviest drags on the price-weighted Dow index. Limiting some of the declines were gains among consumer-discretionary and consumer-staples stocks.

In other corporate news, Chesapeake Energy tumbled 15% to lead S&P 500 decliners after first-quarter earnings and revenue missed expectations. TripAdvisor led the S&P 500 gainers, rising 17% after the travel website reported first-quarter earnings and revenue that topped analyst projections.

The decline came after a report on private-sector job growth in April showed an increase of just 119,000 jobs, well below expectations for 175,000 new jobs and sharply lower than March's downwardly revised gain of 201,000 jobs.

The report is seen as a preview to the closely watched government employment report due Friday. Separately, factory orders in March declined 1.5% from February, in line with expectations.

The weaker U.S. economic data, combined with disappointing readings from Europe, was a reminder of the challenges that market bulls face.

EUROPEAN MARKETS

European markets erased earlier intraday gains after the euro-zone manufacturing purchasing managers' index fell to its lowest level since June 2009.

Meanwhile, the unemployment rate rose to a euro-era high of 10.9% in March from February's 10.8%. Germany saw its unemployment rate rise for just the second time in 15 months.

With Europe's economic picture dimming and China still under a cloud, Weinberg said the threat of a global recession was still a plausible scenario.

European stocks declined Wednesday, with banks hit hardest, as weaker-than-expected U.S. economic data and a string of disappointing releases out of the euro zone added to concerns about growth prospects. The Stoxx Europe 600 index ended down 0.4% at 257.39.

The U.K.'s FTSE 100 index dropped 0.9% to 5758.11, and Germany's DAX slid 0.7% to 6710.77. France's CAC-40 index, however, climbed 0.4% to 3226.33, getting a boost from the country's purchasing managers' index for April, which climbed slightly from a month earlier while the indicator fell in other euro-zone countries.

Spain's IBEX 35 index slid 2.6% to 6831.90, and Italy's FTSE MIB also closed 2.6% lower, at 14213.17. Greece's Athens General Index dropped 2% to 686.19.

Stocks tumbled after the release of the U.S. ADP employment report for April, which showed a 119,000 increase in private-sector jobs, compared with expectations for a rise of 175,000. Separately, U.S. factory orders dropped 1.5% in March, the biggest decline in three years.

In Europe, the seasonally adjusted unemployment rate in the 17-nation euro zone rose to 10.9% in March, a euro-era high, from 10.8% in February.

Meanwhile, euro-zone manufacturing activity shrank in April at a faster pace than previously estimated. Italy's purchasing managers' index dropped four points to 43.8, highlighting concerns about the country's manufacturing sector. Spain and Greece saw accelerating downturns.

Banking stocks in both Spain and Italy posted big losses. Banco Santander and Banco Bilbao Vizcaya Argentaria both fell 3.3% in Madrid.

In Milan, UniCredit tumbled 5.7% and Intesa Sanpaolo fell 4.6%. In London, Barclays lost 5.5% and Lloyds Banking Group fell 4.5%. In Frankfurt, Commerzbank shed 2.5% and Deutsche Bank slid 2.5%.

In Paris, Credit Agricole slipped 2.9% and BNP Paribas fell 1%. UBS was an exception among lenders, gaining 3.7% in Zurich. It said first-quarter profit dropped 54% because of an accounting loss on its own debt, but the bank highlighted a recovery in client activity and improved inflows in wealth-management.

Vestas Wind Systems plunged 5.6% in Copenhagen following disappointing results for the first quarter that featured a larger-than-expected net loss.

ASIA-PACIFIC STOCK MARKETS

Asian stock markets ended higher Wednesday, as upbeat manufacturing data in the U.S. and China lifted investor sentiment, while a weaker yen supported Tokyo shares.

Investors returning from a one-day break in Hong Kong pushed the Hang Seng Index up 1%, while the Shanghai Composite Index rose 1.8% as mainland Chinese bourses traded for the first time this week.

Among other Asian stock markets back from a holiday Wednesday, South Korea's Kospi rose 0.9%. The Japanese market, which was open Tuesday, recorded a less-pronounced gain, with the Nikkei Stock Average up 0.3%.

Investors noted an uptick in manufacturing data from China. Official data out Tuesday showed the Chinese manufacturing sector steadily improving in April, rising for a fifth straight month.

On Wednesday, HSBC released its own manufacturing survey results for April, which also showed an improvement, although the index still remained in contraction territory.

Among advancers in Hong Kong, China Coal Energy rose 1.4% and China Shenhua Energy was up 0.3%. Apparel firm Esprit Holdings gained 2.4%, airline Cathay Pacific Airways rose 1.7%, and exporter and logistics firm Li & Fung advanced 2.2%.

Also helping sentiment for Chinese stocks was news that the China Securities and Exchange Commission and the mainland stock markets would lower costs for stock transactions. Regulators also plan to tighten rules for initial public offerings and unqualified firms would be forced to delist, Citigroup analysts said.

The news sent brokers' shares higher in Shanghai, with Citic Securities up 1.3% and Haitong Securities up 2.3%. In Japan, exporters pared some of the heavy losses posted the previous day. Sony Corp. climbed 0.4%, Alps Electric Co. rose 1.2%, and Kyocera Corp. added 0.9%.confident about the long-term outlook for commodity demand.

COMMODITIES

Base metals closed lower on the London Metal Exchange Wednesday as disappointing U.S. data further soured market sentiment and damped hopes for a strong payroll reading Friday. At the close, LME three-month copper was 1.6% lower at $8,305 a metric ton.

Nickel closed 2.4% lower at $17,280/ton. Crude-oil futures prices fell Wednesday as U.S. crude-oil inventories rose to their highest levels since September 1990.

Light, sweet crude oil for June delivery on the New York Mercantile Exchange settled 94 cents, or 0.9%, lower at $105.22 a barrel. ICE June Brent dropped 1.2%, or $1.46, to $118.20 a barrel, the lowest level since April 24.

The Brent price premium to the U.S. benchmark dropped to $12.98 a barrel, the lowest level since Jan. 31. U.S. crude-oil inventories rose by a higher-than-expected 2.8 million barrels in the week ended April 27 and now stand at the 19th highest level on record since the Energy Information Administration began tracking weekly inventories in August 1982.

Gold futures ended lower for the third straight trading session, pressured by a stronger dollar and waning expectations of further monetary stimulus. The most actively traded contract, for June delivery, fell $8.40, or 0.5%, to settle at $1,654.00 a troy ounce on the Comex division of the New York Mercantile Exchange.