Asian markets are trading on an average 0.6% up same the sgx Nifty up by 37 Point to 5142 at 7.30 AM ..expecting choppy session ahead .
Stocks fell Monday, but finished the day well off of intraday lows, as investors warily eyed a possible resolution on Greek debt talks and soaring Portuguese borrowing costs.
Portuguese bond yields were moving higher, sparking concerns that the country would also need a second bailout like Greece. Yields on the ten-year bond had surged more than 200 basis points to 17.26% Monday.
"At this rate, Portugal is going to move from the back to front burner in very, very short order," wrote Dan Greenhaus, chief global strategist with BTIG, in a note.
European Union leaders meet in Brussels Monday for their first summit of 2012 to finalize steps for a rescue fund of $661 billion to be up and running later this year. Greece and its private creditors, meanwhile, signaled they would agree on a deal in which investors will accept a bigger cut on their government debt holdings. The two sides are "close" to an agreement following three days of talks in Athens, according to Bloomberg.
Only when the debt swap in Greece is resolved can the country receive a second bailout from the International Monetary Fund and other European creditors, which would help Greece avoid a default. The Greece government is under growing pressure to work out a deal given that it faces a €14.5 billion bond payment on March 20. Also, before the country gets fresh funding, Germany is insisting that Athens give up some control over its budget policy.
In Europe, French bank shares were pressured after President Nicolas Sarkozy said he would impose a financial-transaction tax. A reading on consumer sentiment in the eurozone rose less than expected, according to the European Commission in Brussels. Germany's DAX closed down 1.2% while London's FTSE lost 1.1%.
Dow Jones Industrial Average (^DJI) -DJI
|Day's Range:||12,529.41 - 12,659.32|
|52wk Range:||10,362.30 - 12,928.50|