FROM MORRISON SECURITIES PTY. LTD:

U.S. STOCK MARKETS

The Dow industrials snapped a four-day winning streak as investors questioned whether Madrid's weekend agreement to seek bailout funds for its banks will restore confidence in the Spanish economy.

The Dow Jones Industrial Average declined 142.97 points, or 1.1%, to 12411.23 Monday. The blue-chip benchmark gave up a morning advance of as much as 96 points as optimism about the bailout faded.

The retreat followed stocks' biggest weekly gains of the year last week. The Standard & Poor's 500-stock index slid 16.73 points, or 1.3%, to 1308.93. Shares of financial companies led declines across nine of the index's 10 sectors. Bank of America fell 3.7%, leading the Dow lower. The Nasdaq Composite fell 48.69 points, or 1.7%, to 2809.73.

Over the weekend, Spain requested up to 100 billion euros ($125 billion) in loans from the European Union to assist its banks. Statements about the deal left several open questions, including the exact amount of aid the country will need and how the funds will be distributed.

In the corporate arena, Apple unveiled updated Mac laptops and other new products and software at its annual developers conference. Its shares edged down 1.6%.

Alpha Natural Resources fell 9.2%, leading declines in the S&P 500 and hitting an all-time intraday low, as coal stocks' selloff continued amid the industry's competition with cheap natural gas.

Progress Energy climbed 2.5% as the utility operator said a decision by federal regulators would enable Duke Energy to complete its $26 billion all-stock acquisition of the company by July 1. Centene tumbled 22%. The Medicaid insurer lowered its 2012 earnings outlook.

EUROPEAN STOCK MARKETS

Spanish and Italian bond yields surged Monday in a choppy session during which European stock markets erased earlier gains as investors questioned the details of Spain's bank aid-deal, while worries about Greece stirred uncertainty.

The Stoxx Europe 600 index closed slightly lower at 241.92, off a session high of 246.62. News over the weekend that Spanish Finance Minister Luis de Guindos asked the European Union for as much as 100 billion euros ($125.3 billion) in loans to help the country's struggling banks prompted investors to jump into European equities early in the session.

The aid will be provided by the European Financial Stability Facility and the European Stability Mechanism. Yields on 10-year Spanish government bonds surged 23 basis points to 6.42%, according to Tradeweb.

Spanish stocks ended the session on a down note, after rallying almost 6% at the market open. The IBEX 35 index closed 0.5% lower at 6,516.40.

Markets started to curb the initial euphoria in afternoon action, as questions about deal details and whether Spain will be asking for the maximum amount of EUR100 billion stirred uncertainty. Italian stocks trailed the rest of Europe, as the country's banks came under heavy selling pressure. UniCredit SpA lost 8.8%, and Banco Popolare SC and Intesa Sanpaolo SpA both slid 5.9%.

The FTSE MIB index lost 2.8% to 13,070.75. Yields on 10-year Italian government bonds jumped 27 basis points to 6.02%, according to Tradeweb. In the rest of Europe, stock markets painted a mixed picture.

In Germany, the DAX 30 index gained 0.2% to 6,141.05 as car makers Volkswagen AG rose 1.3%. Data showed global car sales at BMW AG and Volkswagen AG's Audi brand reached new monthly record highs in May. Shares of BMW were off 0.1%, however.

Among U.K. stocks, some banks and oil firms advanced. Oil group BP PLC gained 1.4%, while Lloyds Banking Group PLC rose 1.7% and HSBC Holdings PLC climbed 0.5%. The FTSE 100 index edged 0.1% lower to 5,432.37. In France, the CAC 40 index slipped 0.3% to 3,042.76. Credit Agricole SA fell 3.7%, Societe Generale SA lost 3.1% and BNP Paribas SA gave up 1.7%.

ASIA-PACIFIC STOCK MARKETS

Asian stocks rose sharply Monday on news Spain would seek a bailout for its banks, the health of which has been a source of much global anxiety, although analysts said upcoming Greek elections were likely to keep markets on edge.

Hong Kong's Hang Seng Index ended 2.4% higher, its best one-day percentage advance since mid-January, while Japan's Nikkei Stock Average climbed 2%, extending gains after snapping a nine-week losing streak last week. South Korea's Kospi and Taiwan's Taiex each gained 1.7%.

China's Shanghai Composite rose 1.1%, extending the small gains it recorded in morning trading, but still under-performing the region. The gains on the mainland came after data released over the weekend showed exports and imports growing, but inflation cooling more rapidly than expected amid an economic slowdown.

The broad advances reflected an easing over European jitters after Spain's Finance Minister Luis de Guindos said the country is seeking European Union loans for as much as 100 billion euros to help its struggling banking sector.

Monday's gains in Asia were broad-based across the region, highlighted in Hong Kong by a 6.1% rally in shares of China Life Insurance Co., a 6.5% spike for ports operator Cosco Pacific Ltd., a 4.8% advance for Aluminum Corp. of China Ltd. and a 6.6% rise for mobile-service provider China Unicom Hong Kong Ltd.

The jump in Unicom shares came on news that its unlisted parent has acquired a 4.56% stake in the company from Telefonica SA. Shares of diversified Wharf Holdings Ltd. ended 2.2% higher, reversing early losses.

The stock had dropped more than 4% earlier in the day after agreeing to buy new shares in developer Greentown China Holdings Ltd. by investing over $650 million.

Greentown shares spiked 32.5%. HSBC Holdings PLC climbed 2.9% on the Spain news. Financials also rallied elsewhere in the region, with Nomura Holdings Inc. up 1.1%, and Daiwa Securities Group Inc. advancing 3.1% in Tokyo, while KB Financial Group Inc. gained 3.6% in Seoul, and Cathay Financial Holding Co. added 2.1% in Taipei.

In Japan, the euro's return above the 100-yen level helped buoy exporters with an exposure to Europe. Sharp Corp. rallied 8.2%, Mazda Motor Corp. climbed 3% and Canon Inc. advanced 3.5%.

COMMODITIES

Base metals closed mixed on the London Metal Exchange Monday, the complex's upward momentum fading in the latter part of the trading session amid waning enthusiasm for Spain's newly announced bank bailout plan. At the close, LME three-month copper was 1.7% higher at $7,419 a metric ton.

The metal earlier hit an intraday high at $7,506.75/ton. Aluminum closed 0.6% lower at $1,972/ton. Volatile crude oil futures prices fell to their lowest in eight months Monday amid signs that global oil supplies are sufficient to meet demand, even as implementation of tougher sanctions on Iran draws nearer.

Meantime, Secretary of State Hillary Clinton Monday announced exemptions to more than half a dozen countries under tight new sanctions aimed at cutting off Iran's oil sales.

The U.S. moves come as Saudi Arabia's action to lift crude oil output to 10 million barrels a day, in a deliberate effort to reduce soaring prices, becomes the focal point of the meeting of the Organization of Petroleum Exporting Countries in Vienna Thursday.

The U.S. news, late in the session, helped already weak prices drop their lows of the day. Light, sweet crude oil for July delivery on the New York Mercantile Exchange settled down 1.7%, or $1.40, at $82.70 a barrel, the lowest level since Oct. 6, 2011. July ICE Brent crude oil settled down 1.5%, or $1.47, at $98 a barrel, the lowest level since Jan. 27, 2011.

Gold ended a touch higher after shedding most of its weekend gains earlier in the day, as euro-zone worries tempered initial optimism over Spain's bailout.