FROM MORRISON SECURITIES PTY. LTD:

U.S. STOCK MARKETS

U.S. stocks reversed steep losses to finish the day roughly flat, though European stocks and the euro tumbled to 2012 lows amid growing chatter about a potential Greek exit from the euro zone. The Dow Jones Industrial Average ended a volatile session off just 6.66 points, or 0.05%, at 12496.15.

The single-digit point decline at the close came on a day that saw the blue-chip index fall as many as 191 points before briefly turning positive in late trading. The Standard & Poor's 500-stock index erased its earlier declines to rise 2.23 points, or 0.17%, to 1318.86, while the Nasdaq Composite gained 11.04 points, or 0.39%, to 2850.12.

Leading the declines were utilities and health-care stocks, though some technology companies were hard hit by weak earnings from computer maker Dell. Many of the day's worst performers, including materials and industrial stocks, turned positive in the afternoon, buoying the broader markets.

Traders and investors said the late rally in the U.S. was fueled by hopes that policymakers were making headway in their attempts to backstop the Euro zone in the event of a deeper crisis.

In the U.S. equity market, some corners of the technology sector were punished after Dell reported earnings and revenue that missed analyst expectations, and provided a disappointing second-quarter revenue outlook. The 17% stumble in Dell's share price had broad ripple effects across the tech sector.

Blue chips Hewlett-Packard, Intel and Microsoft fell 3.2%, 2.3% and 2.2% respectively, to lead the Dow decliners. Beyond the Dow components, Advanced Micro Devices fell 1.3% and Juniper Networks declined 4.2%. After the closing bell, H-P surged 6.1% after topping revenue expectations. Among other tech names, Facebook rebounded 3.2% after a two-day slide that wiped out 18% from its initial public offering price of $38 a share.

EUROPEAN STOCK MARKETS

Renewed speculation over Greece exiting the euro zone took a heavy toll on European shares Wednesday, with banks and oil stocks in the firing line, as investors also awaited signs of any developments from an informal summit of European Union leaders.

The Stoxx Europe 600 index closed 2.1% lower at 239.51, the worst day since April 23. Former Greek Prime Minister Lucas Papademos told Dow Jones Newswires that the country is making contingency plans for an exit from the euro, and warned of the high costs associated with such a move.

Creating some confusion, Papademos later clarified those comments in an interview with CNBC, saying he wasn't aware of any specific preparations underway in Greece or elsewhere in Europe or among its institutions for the country to leave the Euro bloc.

Ahead of the EU summit beginning in Brussels Wednesday evening, banks and resource stocks led a broad decline for European equities. Among the heavyweights, shares of HSBC Holdings PLC gave up 3% and oil major Total SA fell 1.9%.

The Athens General Index fell 1.8% to 526.39, while Spain's IBEX 35 index dropped 3.3% to 6,440.50 and the FTSE MIB Italy index was down 3.7% at 12,960.87.

France's CAC 40 index dropped 2.6% to 3,003.27, with shares of Credit Agricole SA down 6.3%, Societe Generale SA falling 4.3% and BNP Paribas SA dropping 3.2%.

On the bright side, shares of Carrefour SA jumped 3.4% after Credit Suisse upgraded the retailer to outperform from underperform and lifted its price target. London's FTSE 100 index fell 2.5% to 5,266.41, led by HSBC as well as a 2% pullback for BP PLC and a 2.3% drop for Royal Dutch Shell Group PLC.

The German DAX 30 index shed 2.3% to 6,285.75, led by chemical group BASF SE, shares of which fell 2.6%. Deutsche Bank AG lost 2.8% and Allianz SE sank 2.1%.

ASIA-PACIFIC STOCK MARKETS

Asian markets fell Wednesday after a former Greek prime minister said preparations for an exit from the Euro zone are being considered, damping optimism ahead of a European Union summit.

Former Greek prime minister Lucas Papademos also told Dow Jones Newswires late Tuesday that there is only limited room for the country to negotiate its loan program.

Although he later clarified his comments in an interview with CNBC to say that there were no preparations underway in Greece for a possible exit, and that he wasn't aware of any preparations in other European countries, the damage was already done.

Japan's Nikkei closed 2% down at 8556.60, Hong Kong's Hang Seng Index dropped 1.3% to 18786.19, Korea's Kospi fell 1.1% to 1808.62 and the China Shanghai SE Composite dropped 0.4% to 2363.44.

In addition to renewed European concerns there were also worries over the health over the region's second largest economy, as Japan posted a larger-than-expected trade deficit in April exports of steel and plastic declined as the import of fossil fuels increased.

The trade data followed a downgrade of Japan's sovereign rating by Fitch Ratings, which cited concerns over the country's debt situation.

The Bank of Japan left its policy rate unchanged, as largely expected, though there had been some hopes for a surprise easing. Japanese real estate stocks, which climbed in the last two sessions in anticipation of central bank easing, underperformed the Nikkei: Mitsui Fudosan dropped 2.8%, while Mitsubishi Estate fell 3.2%.

Bucking the negative trend was Japan Tobacco, which climbed 1.9% as investors turned towards defensive stocks with strong earnings outlooks. In Hong Kong, property developers such as Henderson Land closed down 2.5% while Sino Land slumped 4.8% to HK$10.74. Consumer goods conglomerate China Resources Enterprises fell 2.3%, sourcing firm Li & Fung slid 2.4%, while port operator Cosco Pacific ended 4.0% lower.

COMMODITIES
Base metals closed firmly in negative territory on the London Metal Exchange Wednesday amid widespread concern over Greece's future in the euro zone.

Flagship three-month copper tumbled 3.0% to $7,503 a metric ton, its lowest price this year, before closing the open outcry session at $7,531/ton down 2.7% on the day. Nickel held up the best of the complex, closing 0.9% lower at $16,755/ton.

Crude oil futures prices settled at a fresh seven-month low, breaking below $90 a barrel Wednesday, as the latest U.S. weekly oil data showed stockpiles remaining at 22-year highs amid sluggish demand.

Nymex light, sweet crude oil for July delivery settled $1.95, or 2.1%, lower at $89.90 a barrel, the lowest price since Oct. 21, 2011.

ICE North Sea Brent crude for July fell 2.6%, or $2.83 a barrel, to $105.56, the lowest level since Dec. 19. The Energy Information Administration said crude oil stocks rose 883,000 barrels last week to 382.5 million barrels, the most since Aug. 3, 1990.

Gold futures slumped for a third day, as worries about the fallout from a potential Greek exit of the euro zone pushed investors to pile into the U.S. dollar. The most actively traded gold contract, for June delivery, fell $28.20, or 1.8%, to settle at $1,548.40 a troy ounce on the Comex division of the New York Mercantile Exchange.