4:30PM New York, 10:30PM Frankfurt, 7:30AM Sydney[R]– U.S. stocks averages dropped 1% after new and existing home sales declined. UK current account deficit widened. Stocks in Hong and Kong and Shanghai dropped after smaller than expected rate cut.[/R]

Global Markets

U.S. existing home sales declined at a faster pace in November and median price of a home fell too. The home sales were the steepest in the Northeast followed by the South. The new home sales declined at 2.9% annual rate to 407,000 homes. The third quarter estimate of GDP decline was left unchanged at 0.5%.

UK current account deficit in the third quarter rose to 2.1% of gross domestic product or £7.7 billion and in the second quarter GDP shrank at 1.8% rate. Service sector output in October increased 0.6% from September. Mortgage lending in November rose.

China foreign currency reserves drop below US$1.9 trillion. Retail sale of consumer goods in China is likely to jump 21% in the year ending in December. Stocks in Hong Kong dropped 2.8% and in Shanghai plunged 4.9% on the worries that recent rate cut may not be sufficient.

Stocks in Mumbai dropped 2.4% on the worries that global financial crisis will deepen and foreign investment to India may suffer. The government urged Reserve Bank of India to lower rates further but did not indicate when. Wipro agrees to pay $127 million to acquire Citi Technology Services.

For the third straight quarter New Zealand GDP declined. In the quarter ending in September, economy shrank 0.4% after dropping 0.2% in the previous quarter. The economy also declined 0.1% from a year ago, a first annual decline in a year. HFA Holdings plunged after it halted redemptions.

North American Markets

Dow Jones Industrial Average lost 100.28 or 1.2% to a close of 8,419.49, S&P 500 Index decreased 8.48 or 0.97% to 863.15, and Nasdaq Composite Index declined 10.81 or 0.71% to close at 1,521.54. In Toronto, TSX Composite Index increased 0.7% or 60.23 to 8,309.76.

Of the stocks in Dow Jones Industrial Average 6 increased and 24 declined.

General Motors led decliners in the Dow with a loss of 13.9% followed by losses in Bank of America of 5.3%, in Citigroup Inc of 2.9%, in American Express of 2.4%, in Boeing Company of 2.1% and in JP Morgan Chase of 2%.

Alcoa Inc led gainers in the Dow with a rise of 3.6% followed by increase in General Electric of 2.4%, in Merck & Company of 1.4%, in Microsoft Corp of 0.5% and in Exxon Mobil Corp of 0.4%.

Of the stocks in S&P 500 index, 121 increased, 374 decreased and 5 were unchanged. Of the index stocks, 66 fell more than 3%, 14 closed above 3%.

Dynegy Inc led gainers in the S&P 500 index with a rise of 4.2% followed by increase in Newell Rubbermaid of 4.1%, in Kimberly-Clark of 2.6%, in AON Corp of 2.4%, in Pepsi Bottling 2.3% and in Stryker Corp of 2.8%.

Jones Apparel led decliners in the S&P 500 index with a loss of 20.4% followed by declines in Textron Inc of 20.2%, in Ford Motor Company of 15.8% and in General Motors of 14%.

South American Markets Indexes

Brazil led decliners in the region with a loss of 3.1% followed by losses in Argentina of 0.7%, in Colombia of 0.6% and in Venezuela of 0.40%.

Peru led gainers in the region with a rise of 0.6% followed by increase in Mexico of 0.5% and in Chile of 0.1%.

Jamaica dropped 2.4% in Caribbean trading.

Europe Markets Review

In London FTSE 100 Index closed higher 6.82 or 0.16% to 4,255.98, in Paris CAC 40 Index decreased 22.95 or 0.73% to close at 3,128.41 and in Frankfurt DAX index lower 9.64 or 0.21% to close at 4,629.38. In Zurich trading SMI decreased 19.14 or 0.37% to close at 5,399.58.