From Morrison Securities Pty. Ltd.:

U.S. STOCK MARKETS

U.S. stocks edged lower, jeopardizing the Dow's four-session climb, as investors mulled the sustainability of this year's rally and watched Europe for developments connected to the region's ongoing debt issues.

The Dow Jones Industrial Average fell 18.21 points, or 0.1%, to 12702 in afternoon trading. Blue chips slumped after hitting their highest level since May early in Monday's session.

The Standard & Poor's 500-stock index ticked down 1 point, or 0.1%, to 1322, and the Nasdaq Composite fell three points, or 0.1%, to 2804.

Traders cited the desire to lock in profits as a reason for a late-morning turnaround that sent stocks lower. All three benchmarks have posted weekly gains for the past three weeks.

Telecommunications and health-care stocks led Monday's declines, while energy and technology stocks were the best performers on the S&P 500. European markets traded higher as Greece continued its debt-swap talks. Investors showed healthy demand at a German auction of short-term debt but continued to watch Greece as it tries to negotiate a debt-restructuring agreement with its private creditors.

Greece's debt issues are expected to dominate a meeting of euro-zone finance ministers in Brussels Monday, ahead of a meeting of all 27 European Union finance ministers Tuesday. Shares of Research in Motion fell 6.7% and led the S&P 500's declines afterthe BlackBerry maker's co-chief executives, Jim Balsillie and Mike Lazaridis, said they would step down as part of a board and management shuffle. Thorsten Heins, previously one of two chief operating officers, was expected to be named CEO.

EUROPEAN STOCK MARKETS

European stock markets reached a five-month high Monday, as investors remained optimistic that Greece and its creditors will agree on a deal to write down debt by up to 70%.

The pan-European Stoxx 600 index closed 0.5% higher at 257.01. The Greek ASE Composite rallied 5.1% to 744.26, as the government there reportedly got closer to an agreement with private creditors.

Talks to cut Greece's debt by as much as EUR100 billion had stalled over the weekend. On Sunday, Charles Dallara, the creditors' lead negotiator, said in an interview with Greek television that the bond holders have made the "maximum offer" on losses they are willing to bear, leaving it to the European Union and the International Monetary Fund to decide whether to accept the deal.

An agreement is crucial for Greece to avoid a default when EUR14.4 billion comes due March 20. Euro-zone finance ministers met in Brussels Monday to discuss the Greek situation, budget rules and other plans to tackle the debt crisis.

Christine Lagarde, managing director of the International Monetary Fund, warned that the global economy could slip into a "1930s moment" unless Europe deals with its debt crisis.

Meanwhile, bank shares across Europe surged on Financial Times reports that German Finance Minister Wolfgang Schaeuble and French counterpart Francois Baroin would urge a relaxation of global bank-capital rules to prevent a lending slowdown. Schaeuble later issued a denial.

Societe Generale SA gained 8.6%, Credit Agricole SA rose 5.1% and BNP Paribas SA added 2.1%. The French CAC 40 index was up 0.5% at 3,338.42. Among German banks, Commerzbank AG jumped 13% and Deutsche Bank AG rose 3.1%, helping lift the DAX 30 index 0.5% to 6,436.62.

In Italy, Banca Monte dei Paschi de Siena SpA surged 14% and UniCredit SpA advanced 10%, as the FTSE MIB gained 1.8% to 15,907.52. The U.K. FTSE 100 rose 0.9% to 5,782.56 as Essar Energy PLC surged 11%. Adding to the positive sentiment, the shares of oil companies rose. Hunting gained 4.5%, BP rose 2%, Royal Dutch Shell PLC climbed 3%, Petrofac Ltd. advanced 1% and Cairn Energy PLC added 0.6%.

ASIA-PACIFIC STOCK MARKETS

Japanese stocks ended little changed Monday, with several exporters rising to offset losses in energy sector shares. Japan's Nikkei Stock Average finished almost flat at 8,765.90, although the broader Topix index climbed 0.2%.

India's Sensex was up 0.1%. Many regional markets, including those in Shanghai, Hong Kong and Seoul, were closed for Lunar New Year holidays.

Exporters mostly advanced in Tokyo. Toshiba climbed 4.3% after a report said U.S.-based contract chip maker GlobalFoundries is looking to buy a semiconductor factory in Japan, with Toshiba facilities among those in consideration.

Elpida Memory and Casio Computer rose 1.7% each, while Mazda Motor added 1.6%. Shares in Sony advanced 4%, while those of Olympus surged 8.8%, following a Diamond business magazine report which said the two firms were in the final stages of negotiations to form a capital and business alliance. Shares of Inpex dropped 1.8% and JX Holdings shed 2.8% as a firmer U.S. dollar weighed on crude-oil prices.

COMMODITIES

Copper closed the London Metal Exchange's afternoon kerb trading 1.8% higher Monday, having held in positive territory throughout the session on a stronger euro and hopes of an improving demand picture.

LME three-month copper ended the PM kerb at $8,364 a metric ton, well up on Friday's close of $8,219/ton. The red metal, which is priced in dollars, gained from a stronger euro as traders shrugged off the apparent lack of progress in debt negotiations between the Greek government and its private creditors.

Earlier in the session the euro had reached its highest level against the dollar since Jan. 4. Data showing record-high copper imports into China, the world's largest consumer of the metal, also helped to shore up sentiment for the industrial commodities. The best performing metals, however, were lead--which gained 2.8%--and zinc--which gained 2.3%.

Turnover was lower than normal given the closure of Asian markets for the Lunar New Year holiday, and analysts say the metals remain vulnerable to heavy selling should the broader markets move back into "risk-off" mode. Crude-oil futures gained Monday as the European Union imposed an import ban on Iranian oil, leading to concerns about supplies.

Iranian authorities have threatened to close the Strait of Hormuz, a key shipping lane for the oil trade, and disrupt oil supplies in retaliation against the ban. Light, sweet crude for March delivery on the New York Mercantile Exchange settled 1.3% higher at $99.58 a barrel.

Gold and silver futures both settled at six-week highs as a weaker dollar boosted demand for alternative investments amid a murky economic outlook. Gold for February delivery, the most active contract, rallied $14.30, or 0.9%, to settle at $1,678.30 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the highest settlement price since settling at $1,716.80 a troy ounce Dec. 9. The most actively traded silver contract, for March delivery, settled up 59.5 cents, or 1.9%, at $32.270 a troy ounce on the Comex division of the New York Mercantile Exchange.This was the highest settlement price since settling at $32.627 a troy ounce Dec. 7.