4:30PM New York, 10:30PM Frankfurt, 7:30AM Sydney[R]– U.S. stocks fell sharply on the worries that the U.S. Senate may not pass auto bailout plan. U.S. trade deficit in October rose. China’s international trade in November fell. Australian unemployment in November rose.[/R]

Global Markets

U.S. international trade deficit widened in October as exports fell more than imports. Exports in the month totaled $151.7 billion and imports in the month were $208.9 billion with a deficit of $57.2 billion, higher than revised deficit of $56.6 billion in September.

Seasonally adjusted initial unemployment claims at the end of last week rose 58,000 to 573,000 from the previous week claims of 515,000. Bank of America said it will cut up to 30,000 jobs in the next three years.

U.S. stocks fell on the worries that the U.S. Senate may not pass auto bailout plan passed by the House. If the bill is not passed, automakers may have to declare bankruptcies. In trading, market indexes declined on a sharp fall in real estate investment trusts.

Office vacancies in central Tokyo rose as more financial and services companies lay-off people in the district. Separately, stocks edged higher on the optimism that the U.S. will pass $14 billion auto bailout plan and support auto parts makers who also supply to Japanese car companies.

China foreign trade rises in the first eleven months 29% from a year ago but faced a sharp deceleration in November. The latest data showed exports in the month declined 2.2%, first decline since June 2001. Imports declined at a faster pace indicating slowdown in domestic economy.

Australian market averages fell after November unemployment rose to 4.4%. The Canberra Times reported that Qantas was charged with A$20 million on freight price fixing. Santos agreed to transfer 18% interest at an Indonesian location.

North American Markets

Dow Jones Industrial Average declined 196.33 or 2.2% to a close of 8,565.09, S&P 500 Index decreased 25.66 or 2.9% to 875.59, and Nasdaq Composite Index fell 57.60 or 3.7% to close at 1,507.9. In Toronto, TSX Composite Index dropped 242.10 or 2.8% to 8,391.90.

Of the stocks in Dow Jones Industrial Average 2 increased and 28 declined and none was unchanged.

Chevron Corp rose 1.3% and Johnson & Johnson gained 0.8%.

JP Morgan Chase led decliners in the Dow with a fall of 11% followed by decrease in Bank of America of 10.7%, in General Motors of 10.5%, in Citigroup Inc of 8.8% and in American Express 6.6%.

Of the stocks in S&P 500 index, 59 increased, 439 decreased and 2 were unchanged. Of the index stocks, 13 fell more than 3%, 269 closed above 3% and 55 surged more than 10%.

Prologis led decliners in the S&P 500 index with a fall of 25% followed by losses in Apartment Investment Corp of 21%, in Equity Residential Properties of 21%, in Developers Diversified Corp of 20.1%, in Ciena Corp of 20% and in Kimco Realty of 18.1%.

United Health Gropu led gainers in the S&P 500 index with a surge of 9% followed by increases in Hess Corp of 6.8%, in McKesson Corp of 6.4%, in AmerisourceBergen of 5.8% and in Sun Microsystems of 4.2%.

South American Markets Indexes

Mexico fell 1.3% and Brazil declined 1.24%.

Argentina led gainers in the region with a rise of 2.7% followed by gains in Colombia with a gain on 1.24%, in Chile of 0.3%, in Peru of 0.24% and in Venezuela of 0.17%.

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