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Markets Encouraged By Progress In Greece's Talks With Private Creditors

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1/31/2012 9:24 AM ET
(RTTNews) - The major U.S. index futures are pointing to a higher opening on Tuesday, with sentiment getting a lift from the news that the Greek government may be close to resolving the deadlock in its talks with its private sectors. The news should remove some of the overhang surround the Greek debt crisis and the region's debt woes in general, although Portugal's troubles are speculated to be running deep. Traders may also look forward to a domestic consumer confidence survey and also a regional manufacturing survey for further cues.

U.S. stocks retreated on Monday, although closing well off the lows of the session, with the Dow Industrials and the S&P 500 Index extending their losses for the third straight session. The major averages opened the session sharply lower, hurt by the negative cues from Europe and a lackluster domestic consumer spending report. The averages gradually pared much of their losses over the course of the session but still closed lower.

The Dow Industrials ended down 6.74 points or 0.05 percent at 12,654 and the S&P 500 Index closed 3.32 points or 0.25 percent lower at 1,313, while the Nasdaq Composite Index receded 4.61 points or 0.16 percent before closing at 2,812.

The breadth among the Dow components was nearly even, with 15 stocks closing lower, while 3 stocks closed unchanged and the remaining 12 stocks advanced. Bank of America (BAC) slipped over 3 percent. Alcoa (AA), American Express (AXP) and Procter & Gamble (PG) also saw notable losses. On the other hand, Microsoft (MSFT), IBM (IBM) and Verizon (VZ) added over 1 percent each.

Oil service, financial, housing and semiconductor stocks were among the worst hit stocks.

Commodity, Currency Markets

Crude oil futures are trading up $1.05 at $99.83 a barrel after dipping $0.78 to $98.78 a barrel on Monday. An ounce of gold is valued at $1,746.80, a gain of $12.40 from the previous session's close of $1,731. In the previous session, the precious metal slid $1.20.

Among currencies, the U.S. dollar is trading at 76.33 yen compared to the 76.35 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.3170 compared to yesterday's $1.3154.

Asia

The Asian markets closed a nervous session mostly higher, with the Indian, Hong Kong and Taiwanese markets pacing the gains in the region. Along with the Greek optimism, traders were also encouraged by a positive industrial production data from Japan.

Despite witnessing lackluster sentiment in early and late trading, Japan's Nikkei 225 average added 9.46 points or 0.11 percent before closing at 8,803. A report released by Japan's Ministry of Economy, Trade and Industry showed a 4 percent increase in industrial output compared to the previous month, with auto and electronics products leading the gains.

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