Australia: News out of Japan is becoming more positive with reports this morning that all 6 nuclear reactors at the Fukushima power plant have had power restored and should start cooling in the coming days.

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Base metals closed higher overnight as recent lower prices generally became attractive to buyers. Gold was fairly unchanged, trading at US$1,425.98 per ounce, while oil rose slightly to be trading at US$115.55 a barrel, as the conflict in Libya continues to concern. While there is no local data out today, markets will focus take its lead from Asian markets, we expect the AUD to remain firm as investors risk appetite improves.

Majors: In the US overnight equity markets finished slightly lower the Dow closed down 17points, taking a breather from the previous days rally.

Federal Reserve members added to the positive tone of the US economy overnight with Pianalto a non-voting member, saying that she expects the economy to expand at a moderate pace, slightly above average growth rate of about 3% a year. She also noted that "I am seeing clearer signs of virtuous cycle of growth", adding that rising incomes and rising profits are supporting growth in retail sales and business demand, which in turn fuels more growth in incomes and profits."

On the data front US house prices reported a fall of 0.3% in January, while the Richmond Fed manufacturing index in March came in at 20 from 25 in February continuing to be strong. Meanwhile in the UK the UK CPI was stronger than expected at 0.7% month on month taking the annual rate to 4.4%.

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