US Markets
US stock markets rose overnight, as investors remain relatively unconcerned over the lack of a conclusion over the Greek debt-refinancing negotiations.
The Dow Jones closed at fresh multi-year highs, its highest since May 2008. Â In the broader markets the indexes held on to recent gains, again seven of the S&P 500′s 10 sectors were higher, led by again by energy and utilities. Â
Talks between Greece and its creditors on a loan deal continue as a new fiscal pact is necessary for Greece to receive the next round of bailout funds. Â The Federal Reserve Chairman Ben Bernanke address the US Senate budget committee and there has been a modest increase in the long-term normal rate of US unemployment, but did not say anything new. Â
In corporate news, Coca-Cola rose, after reporting 4Q earnings and revenue that exceeded estimates, and  MasterCard said it will double its quarterly dividend as the credit-card processor on the back of a strong profits and revenue, while Coinstar (the provider of Redbox DVDs) climbed 14% after the company reported fourth-quarter results that were well above expectations and provided a first-quarter revenue outlook that exceeded forecasts. Â
Commodity prices rose on the back of a weaker US dollar.
All ten company groups that make up the S&P index traded mixed, with the Materials down -0.1% , Energy sector was up 0.5%, Financials sector down -0.1%, Industrials sector was down -0.1%, Technology was up 0.3%, while Consumer Staples were up 0.5%.
The Dow Jones closed up 0.3% (or 33 points) at 12,878, the S&P 500 index up 0.2%  (or 3 points) at 1,347, the Nasdaq ended up 0.1% (or  4 points) at 2,532 and the smaller cap Russell 2000 was up 0.1%.
European Markets
European stock markets closed lower overnight, but pared losses in late trade on reports that Greece was close to reaching an agreement needed to qualify for a second bailout. The Stoxx Europe 600 index closed 0.3% lower. Â
European markets recovered from early losses, after news that Greek government officials were drafting a final agreement on budget cuts to be presented to political leaders. Â The Greek political parties have been struggling to finalize details of another round of austerity measures, intended to pave the way for their second bailout package for Greece. Â
In economic news German industrial output data unexpectedly fell a seasonally adjusted 2.9% on the month in December, the biggest drop since the days of the GFC. Â This weighed on German stocks particularly autos and miners. Â In corporate news, Glencore International PLC and Xstrata PLC said they agreed to an all-share merger of equals that would create a $90 billion natural resources company, however some institutions are saying that the deal undervalues Xstrata.
In London the FTSE 100 index closed down -0.1% (or -2 points) at 5,890, the German DAX was down -0.2% (or -10 points) at 6,754 while in France the CAC was  up 0.2% (or 6 points) at 3,411, Spain was up 0.1% and Italy ended up 0.6%.
Asian Markets
Asian stock markets eased yesterday, as markets reacted to key levels. Across the region stocks in the property, coal mining and banking sectors lost ground, because of disappointment over the Chinese government’s lack of monetary policy easing measures.  The spectre of lack of clear progress in ongoing Greek debt restructuring negotiations also weighed on sentiment.
In China the market fell as tight liquidity conditions and the absence of an easing in the reserve ratio requirements for banks weighed on stocks. Â Hong Kong and Japanese markets ended flat.
In China the SSE Composite was closed up 0.1% at 2,331 while in Hong Kong the Hang Seng Index was down -0.2% (or  -47 points) at 20,709 and in Japan the Nikkei 225 Index closed up 1.1% (or  97 points) at 8,929, South Korean KOSPI was up 0.1% for the session, while the Indian market up 0.6%.
Commodities
For the session the Benchmark crude NYMEX for March delivery was down -0.9% (or -$US0.95) settle at $US97.19. Â Copper prices are seeking a support level as Copper for February delivery was down -1.0% (or -3.8 cents) at $US3.8580. Â February gold was down -0.9% (or -$US15.10) at $US1,720.Â
ASX News Today
AKI – Suitor Exxaro Resources the South African miner has all but 27 percent for minimum acceptance level in its $338 million take-over bid for African Iron the Perth-based iron ore explorer.
BKN- Brdken the mining and rail equipment manufacturer says first-half profit is up 65 percent and its full-year expectations remain unchanged.
CLO – Clough the engineering and construction firm, has won a $140 million contract for work on Inpex’s $US34 billion Ichthys liquefied natural gas (LNG) project.
COH – Cochlear has suffered a $20 million dollar loss in the first half of its financial year after a mass recall of one its most popular bionic ear devices.
LEI – Leighton Holdings subsidiary Thiess has won a $1 billion mining contract to extend the life of OZ Minerals’ Prominent Hill copper and gold mine.
MQG – Macquarie Group says full-year net profit is expected to fall by as much as 25 per cent amid difficult trading conditions.
NAB – National Australia Bank lifted cash earnings in the first quarter to $1.4 billion but the bank says higher funding costs are impacting its business.
TCL – Toll road operator Transurban expects a strong performance in the second half of the financial year as it continues major construction projects in Australia and the US and finalises contracts on other developments.
Corporate News
ASX – to open lower
Commodities Stock Index  up 0.1%
Gold Stocks Index down -0.1%
Oil Stocks Index up 0.6%Â
US ADRs – Broadly Higher!!…
BHPÂ down -0.5%, Â RIOÂ down – 0.5%; AWC up 1.4%
ANZÂ down – 0.7% &Â NABÂ up 0.3%
NEM   down -0.2%, JHX up 0.9%, NWS up 1.2%
By Michael Hevern
Head of Research
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