[R]9:00AM New York, 2:00PM London – European markets decline on weak banks and Asian markets retreat on weak closing in Japan.[/R]

European indexes trade lower ahead of the U.S. market opening. France leads the region with a loss of 1.5% followed losses in UK of 1.4%, in the Netherlands of 1.2%, in Norway and Switzerland of 1.1%, and in Italy of 1%.

Nokia dropped 4% after it reported that handset volume will rise 10% and average price of handset will decline next year.

Bank stocks in UK fell after a rating revision from Morgan Stanley. Royal Bank of Scotland fell 2%, Barclays declined 1.9%, HBOS dropped 2.5%, and Alliance Leicester edged 2.2% lower.

Swiss Life jumped 1% after the company reaffirmed the profit guidance and said that current sub-prime crisis will not hurt the profit outlook for the rest of the year.

Asian markets closed mixed after a weak close in the U.S., falling markets in Europe, and continued worries related to the faltering economic growth in the U.S.

Japan led the region with a loss of 1% followed by losses in Sri Lanka of 0.5%, and 0.1% in Australia. Indonesia led the region with a rise of 1% followed by increases in South Korea and Taiwan of 0.8%, in Hong Kong of 0.77%, and in Philippines of 0.5%.

Shipping companies in Tokyo trading fell after comments from comments from Batic Exchange chief executive comments that the rates in 2008 are likely to decline. Mitsui Engineering and Kawasaki Kisen dropped 5% and 7% respectively.

Yahoo Japan and eBay are in a deal to use common site to promote listing from both portals.

Hong Kong property stocks rallied after yield on U.S. bonds fell further. Sun Hung Kai Properties gained 3%, Cheung Kong jumped 1.3%, and Henderson Land added 1.7%.

Ping An added 1% on the approval from China Insurance Regulatory Commission to invest up to 15% of its capital base in international markets. The approval was rumored to for weeks in the market. China is looking to put its foreign currency reserve of more than $1.3 trillion to use as most it yields less than 5% return in the U.S. bonds.



[R]6:00AM New York, 7:00PM Tokyo - Slowing U.S. economy drags Tokyo down 0.95%. Economic and Fiscal Policy Minister Hiroko Ota says government to develop emergency policy to protect small businesses and consumers.[/R]

In Tokyo trading Nikkei 225 slipped 0.95% or 148.78 to 15,480.19, while the broader Topix Index slumped 16.66 to 1,515.50.

In the first section of the Tokyo Stock Exchange 8.4 billion shares worth 1.0 trillion yen were traded and 482 million shares valued at 9.0 billion yen changed hands in the second section.

Of the Nikkei 225 stocks 60 gained, 156 declined and, 9 were unchanged. Komatsu Limited led retreating stocks with a decline of 7.14% as manufacturing dipped, followed by Kawasaki Kisen falling 6.9%.

Other shipping lines also declined after Baltic Exchange Limited Chairman Michael Drayton said that freight charges would start to decline next year. Mitsui Engineering & Shipbuilding fell 4.86%, Nippon Yusen declined 4.16% and Mitsui O.S.K. Lines slumped 6.14%.

The U.S. Institute of Supply Management reported yesterday that the factory index dropped to the forecasted 50.8 in November from 50.9 registered in October, stoking expectations that the U.S. economic growth may be in the early stage of decline.

U.S. Federal Reserve of San Francisco President Janet Yellen said yesterday that financial conditions and consumer spending had deteriorated more than she had expected.