FROM MORRISON SECURITIES PTY. LTD:

U.S. STOCKS MARKETS

Stocks held onto gains in early-afternoon trading, even as Greece delayed action on austerity measures to address its debt crisis. The Dow Jones Industrial Average was up 35 points, or 0.3%, at 12881, reversing early losses.

The Standard & Poor's 500-stock index was up 2.2 points, or 0.2%, at 1347, and the Nasdaq Composite was up 2.8 points, or 0.1%, at 2905. Seven of the S&P's 10 sectors were higher, led by utilities and consumer-discretionary stocks.

McDonald's was the largest gainer on the Dow with a 1.4% rise. Talks between Greece and its creditors on a loan deal appeared to be nearing a conclusion Tuesday, though political leaders postponed a meeting of political leaders later in the day to discuss the plans.

A new fiscal pact is necessary for Greece to receive the next round of bailout funds. Federal Reserve Chairman Ben Bernanke told the U.S. Senate budget committee there has been a modest increase in the long-term normal rate of U.S. unemployment, noting it was a cause of concern to monetary policy makers.

Meanwhile, the Bureau of Labor Statistics reported the number of U.S. job openings jumped 8.3% in December to 3.4 million, as employers continue to increase the number of positions they are looking to fill.

In corporate news, Coca-Cola rose 1% after the soft-drink company reported fourth-quarter earnings and revenue that exceeded estimates.

Coinstar climbed 18% after the company reported fourth-quarter results that were well above expectations and provided a first-quarter revenue outlook that was above current projections. In addition, the company said its wholly owned subsidiary, Redbox Automated Retail, has agreed to buy the assets of NCR's entertainment business for as much as $100 million. NCR rose 9.2%.

EUROPEAN STOCK MARKETS

Most European stock markets closed lower Tuesday, 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 at 263.55, after trading as low as 261.62. European markets pared losses on news that Greek government officials were drafting a final agreement on budget cuts to be presented to political leaders later in the day.

The French CAC 40 index rose 0.2% to 3,411.54, recovering from an earlier low of 3,379.43. The U.K.'s FTSE 100 index ended marginally lower, down 0.03% at 5,890.26. Germany's DAX 30 index fell 0.2% to 6,754.20.

Greece's main political parties have been struggling to finalize details of another round of austerity measures, including wage cuts, intended to pave the way for what would be a second bailout package for Greece.

The Athens General Index rose 2.2% to 802.21. In deal 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, Standard Life Investments said it would vote against the merger, on the grounds that the deal price undervalues Xstrata.

Shares of Xstrata dropped 4.9%, while Glencore closed 3.8% lower. Elsewhere in the mining sector, Randgold Resources Ltd. declined 3.6%, Eurasian Natural Resources Corp. fell 2.6%, Antofagasta PLC lost 2.1% and Kazakhmys PLC shed 2.5% in London.

In Germany, several heavyweight auto makers ended lower. Shares of Daimler AG lost 1.8%, BMW AG fell 2% and Volkswagen AG declined 1.4%. German industrial output data unexpectedly fell a seasonally adjusted 2.9% on the month in December, against economists' forecasts for a 0.2% increase.

ASIA-PACIFIC STOCK MARKETS

Mainland Chinese shares tumbled Tuesday leading most major Asian markets lower as investors sold stocks across the board amid disappointment over a lack of monetary policy easing measures in the world's second largest economy.

A lack of clear progress in ongoing debt-restructuring talks in Greece also dented sentiment in Asia. China's Shanghai Composite dropped 1.7% to 2291.90 and Japan's Nikkei Stock Average slipped 0.1% to 8917.52. Hong Kong's Hang Seng Index fell 0.1% to 20,699.19.

Bucking the broad trend, South Korea's Kospi rose 0.4% to 1981.59 and Taiwan's Taiex added 0.3% to 7707.44. Tight liquidity conditions in China and the absence of a reduction in the reserve requirement ratio for banks pressured stocks on mainland bourses.

Air China dropped 4.1%, Anhui Conch Cement slid 3.2% and Harbin Pharmaceutical Group fell 3.1%; the trio were among the notable decliners in Shanghai, where losses where widespread.

In Hong Kong, Chinese property, coal mining and banking stocks lost ground, with Agile Property Holdings slumping 4.7%, China Coal Energy dropping 2.0% and Bank of China falling 1.2%.

In Tokyo, underwhelming earnings reports put some firms under pressure. Suzuki Motor Corp. fell 1.8% after posting a profit slide of just under 5.0% for the April-December period. Dainippon Screen Manufacturing shed 7.1% after lowering its full-year group net profit view. In Seoul, shares of Samsung Electronics added 1.8% and Hyundai Heavy Industries Co. climbed 0.7% on foreign buying interest, providing support for the broader market.

COMMODITIES

Base metals closed mostly higher on the London Metal Exchange Tuesday, boosted by a sharp uptick in the euro amid optimism over debt negotiations in Greece.

At the close, three-month aluminum was 1.4% higher at $2,254.40 a metric ton, while flagship copper was just 0.2% lower at $8,480/ton, well above its intraday low of $8,354/ton.

Crude futures shook off initial weakness to settle higher Tuesday, gaining as Greece reportedly neared a deal on its debt negotiations.

Crude for March delivery settled 1.6% higher at $98.41 a barrel on the New York Mercantile Exchange. The spread between U.S. benchmark crude oil futures and North Sea Brent crude narrowed for the first time in nine days.

Comex gold futures bounced to positive territory as Federal Reserve Chairman Ben Bernanke's testimony to the Senate Budget Committee and hopes of an imminent Greece deal buoyed investor confidence.

Bernanke told the committee that setting U.S. fiscal policy on a sustainable path should be made a top priority, reiterating earlier comments made to House lawmakers.

He also said the official 8.3% jobless rate understates the weakness of the labor market, calming gold traders who worried that recent improvements in U.S. employment data would curb the chances of further monetary stimulus and jeopardize the Fed's low interest rate policies. Gold prices reversed earlier losses, climbing $23.50, or 1.4%, to settle at $1,748.40 a troy ounce on the Comex division of the New York Mercantile Exchange.