US mortgage applications rose in the past week with the mortgage market index lifting 7.5pct, underpinned by a 9.4pct increase in refinancing activity.

A meeting of Greek political leaders to discuss conditions for the country´s second financing package has begun. A meeting of the Eurogroup of euro zone finance ministers has been called for Thursday to examine a package of financial aid for Greece, as well as a bond-swap with private-sector creditors.

In an effort to support the property market, the People´s Bank of China (PBOC) said on Tuesday that banks must provide loans to first-home buyers.

European shares again eased slightly on Wednesday on ongoing uncertainty about the Greek financial situation. The FTSEurofirst index fell by 0.2pct, with the UK FTSE down 0.2pct and the German Dax fell by 0.1pct.

US sharemarkets eased in morning trade but clawed back losses in afternoon trade. Investors continue to track earnings results. Of the 315 companies in the S&P 500 that have reported earnings to date, 61pct have come in above analysts´ expectations. At the close of trade, the Dow Jones was up by 5.8 points or less than 0.1pct after being down 60pts at one stage. The S&P 500 was up 0.2pct and the Nasdaq was up by 11.8pts or 0.4pct.

US treasuries were steady on Wednesday as investors awaited news on the Greek bail-out talks. A $24 billion sale of 10-year debt was completed without troubling the market. A $16 billion offering of 30-year bonds is scheduled on Thursday. US 2yr yields were steady at 0.258pct and US 10yr yields rose 1pt to 1.98pct.

Major currencies tracked sideways against the US dollar over the European and US sessions. The Euro held between US$1.3225 and US$1.3290, and was near US$1.3260 in late US trade. The Aussie dollar held between US107.70c and US108.40c, and was near US107.90c in late US trade. And the Japanese yen held between 76.70 yen per US dollar and JPY77.16 and was near JPY77.01 in late US trade.

World crude oil prices rose modestly on Wednesday. Investors weighed news of a lift in US crude inventories in the past week and ongoing tensions between Iran and western nations. The US Nymex oil price was up US30c to US$98.71 a barrel and London Brent crude rose by US97c to US$117.20 a barrel.

Base metal prices were generally lower on Wednesday. Most metals fell 0.2-0.4pct but nickel lost 1.4pct. But bucking the trend was copper, up 1.2pct, after China pledged support for the property market. And the gold price eased again on Thursday with the Comex April gold price down by US$17.10 or 1.0pct to US$1,731.30 an ounce.

Ahead: In Australia, no major economic data is scheduled. Earnings are expected from News Corp, Telstra, Tabcorp, Stockland and Rio Tinto. In China data on producer and consumer prices are released. In the US, the weekly jobless claims data is released.