FROM MORRISON SECURTIES PTY. LTD.

U.S. STOCK MARKETS

Stocks declined, as investors eyed a standoff in Greece's debt-reduction talks and mixed quarterly earnings from a basket of major companies.

The Dow Jones Industrial Average was down 39 points, or 0.3%, at 12669 in recent afternoon trading, on pace to post its second consecutive decline for the first time in nearly three weeks.

The Standard & Poor's 500-stock index shed two points, or 0.3%, to 1313, and the Nasdaq gave up two points, or 0.2%, to 2785. The S&P 500 was poised to end its recent streak and close lower for the first time in five sessions.

The benchmark has risen in 12 of the past 14 trading sessions. Data pointed to economic resilience in the euro zone, with a survey showing manufacturing activity improving for a third month.

Still, the International Monetary Fund trimmed its global growth estimates for the year to 3.3%, warning that the euro-zone debt crisis could shave roughly two percentage points off worldwide output if there isn't a resolution soon.

The docket was full of companies reporting their earnings. McDonald's fourth-quarter earnings rose 11% as the fast-food company beat analyst expectations.

Still, shares fell 2.3% after hitting an all-time high last week. Travelers lost 3.2% after the insurer reported fourth-quarter earnings that missed forecasts. Verizon Communications shed 2% after the wireless carrier's fourth-quarter earnings came up shy of estimates.

Verizon's decline trickled through other telecommunications stocks, which lagged all sectors on the S&P 500. The technology sector provided a pocket of resilience Tuesday and was among the S&P 500's best-performing sectors.

VMware reported late Monday that fourth-quarter earnings rose 67%, allaying fears of waning business demand as companies continued to invest heavily in technology for cloud computing. Shares rose 7.8%. EMC gained 6.7% after the data-storage provider's fourth-quarter earnings and revenue topped forecasts and its 2012 projections were in line.

EUROPEAN STOCK MARKETS

European stock markets ended lower Tuesday as European finance ministers pressured Greece's private creditors to accept lower interest rates on restructured Greek government debt. The Stoxx 600 index fell 0.4% to close at 256.04, pulling back from a five-month high set the previous session.

The U.K.'s FTSE 100 index slipped 0.5% to end at 5,751.90, while the German DAX 30 settled 0.3% lower at 6,419.22. The French CAC 40 shed 0.5% to close at 3,322.65. Shares across Europe were pressured as Greece has yet to conclude debt talks with its private debtholders to write down the country's debt by EUR100 billion. However, Greek Finance Minister Evangelos Venizelos said in a statement

Tuesday that euro-zone finance ministers had given Greece the "green light" to conclude talks with debt holders within a few days. A resolution is crucial as Greece must repay EUR14.5 billion of maturing debt in March to avoid a default. The Greek ASE Composite index fell 5.5% to 703.44, with National Bank of Greece SA dropping 13.4% and Hellenic Telecommunications Organization SA shedding 10.7%.

Elsewhere, earnings reports from heavyweight blue chips were weighing on sentiment across Europe. Shares of Koninklijke KPN NV sank more than 7% after the Dutch telecom carrier reported a sharply lower net profit for the fourth quarter and cut its 2012 outlook.

STMicroelectronics NV dropped 5.8% in Paris, as fourth-quarter sales slumped across all of the chip maker's main business segments. Industrial conglomerate Siemens AG fell 1.3% after reporting a drop in first-quarter earnings as the European debt crisis hit the wider economy. Nokia Corp. sank 6.9% after Danske Bank reportedly downgraded the handset maker and a supplier warned of lower sales.


ASIA-PACIFIC STOCK MARKETS
Japanese shares rose Tuesday as energy producers climbed on the back of firm oil prices. Trading volumes were quiet, with stock markets in Hong Kong, mainland China and South Korea among those closed for the Lunar New Year holiday.

The Nikkei Stock Average closed up 0.2%, India's Sensex was 1.6% higher and Thai shares added 0.5%. Energy stocks climbed as benchmark New York crude oil futures hovered around the $100-a-barrel mark in electronic trading in Asia.

Among the gainers, Inpex rose 2.2% and Japan Petroleum Exploration climbed 1.4% in Tokyo. The Bank of Japan Tuesday kept interest rates on hold at near-zero, noting that activity in the Japanese economy has "been more or less flat" due to a slowdown in overseas economies and appreciation of the yen.

Despite the thin trading, some notable movers emerged, with chip maker Elpida Memory Inc. jumping 4.6% after a Yomiuri Shimbun report that the firm is set to agree on an alliance with U.S. company Micron Technology Inc. and Taiwan's Nanya Technology Corp.

Shares of Toyota Motor gained 2.7%. The auto maker announced late Monday that it would cut 350 jobs at a plant in Australia, in part due to the high Australian dollar. Sharp fell 1.8% in Tokyo after an NHK report that it plans to enter the solar-power market. Shares of Sony lost 2.4%, after a Nikkei report added details of a rumored tie-up between the tech giant and Olympus Corp.

COMMODITIES
Base metals closed mixed on the London Metal Exchange Tuesday after a session in which the euro whipsawed against the dollar and market participants pitted concerns over Greece's crucial debt-restructuring talks against expectations of tightening fundamentals.

LME three-month copper, widely considered an industry bellwether, ended the day at $8,350 a metric ton, down $14, or 0.2%, from Monday's close.

Reports of a widening rift between Greece and its private-sector creditors worried investors, although hopes of an eventual deal helped to pull the euro back into positive territory late in the European day.

Crude-oil futures fell back below $99 a barrel Tuesday, pressured by strength in the U.S. dollar as traders eyed negotiations over Greece's debt crisis and continued to mull the impact of the European Union's oil embargo on Iran. Light, sweet crude for March delivery settled 63 cents lower at $98.95 a barrel on the New York Mercantile Exchange.

Gold futures closed below $1,665 an ounce, pulling back from a six-week high to post their first loss in three sessions on strength in the dollar and a lack of buying support from Chinese markets due to the Lunar New Year holiday there. Gold for delivery in February fell $13.80, or 0.8%, to settle at $1,664.50 an ounce on the Comex division of the New York Mercantile Exchange. During the session, it dropped as much as $17.30 to touch a low of $1,661.