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January 24th, 2012 Published by: IBTim

IBT Markets Outlook brings you the latest on stock markets

from all over the world with Global Markets Overview and

the outlook for the AUstralian dollar for the day ahead. It

 brings together news and analysis from our well established

 partners such as FNArena and Airview as well as must-readcontent like DJIA Wrap and Gold Wrap.

New from Our Partners

FNArenaA Coming Great Global Angst

Uranium Over-Excited?

Participate In FNArena's January Investor Sentiment Survey

Aluminium Smelting Succumbs To Costs

Gold Rally All About The FOMC And Quantitative Easing

AIRVIEW

Markets: The Surge Goes On

DIARY: Aust. Inflation, US Growth, Earnings, Eurozone Debts

Commodities: Beef Cattle, Frozen Orange Juice Prices Jump

Investing: Confidence Lifts Among Big Managers

2012: Better Than We Think?

GOLD

Gold Prices Rise Nearly 1%, Hit Six-Week High

DJIA: Gingrich Surges in National Polls, Starbucks Announces Evening

Menu, McDonald's Q4 Earnings Up 11%

 Polyus Gold May Raise $1 Billion in London Listing

 Gold Futures Hit 6-Week High, Silver Jumps 1.9%

 More Sanctions on Iran Pushes Gold Prices to Six-Week High: GLD,SLV

Global Markets Overview

U.S. MARKETS

U.S. stocks edged lower, jeopardizing the Dow's four-session clim

as investors mulled the sustainability of this year's rally and watch

Europe for developments connected to the region's ongoing dissues.

The Dow Jones Industrial Average fell 18.21 points, or 0.1%,

12702 in afternoon trading. Blue chips slumped after hitting th

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%,

2804.

Traders cited the desire to lock in profits as a reason for a lamorning turnaround that sent stocks lower. All three benchma

have posted weekly gains for the past three weeks.

Telecommunications and health-care stocks led Monday's declin

while energy and technology stocks were the best performers

the S&P 500. European markets traded higher as Greece continu

its debt-swap talks. Investors showed healthy demand at a Germ

auction of short-term debt but continued to watch Greece as it tr

to negotiate a debt-restructuring agreement with its private credito

Greece's debt issues are expected to dominate a meeting of euro-zo

finance ministers in Brussels Monday, ahead of a meeting of all European Union finance ministers Tuesday. Shares of Research

Motion fell 6.7% and led the S&P 500's declines afterthe BlackBe

maker's co-chief executives, Jim Balsillie and Mike Lazaridis, sa

they would step down as part of a board and management shuff

Thorsten Heins, previously one of two chief operating officers, w

expected to be named CEO.

EUROPEAN MARKETS

European stock markets reached a five-month high Monday,

investors remained optimistic that Greece and its creditors will agr

on a deal to write down debt by up to 70%.

The pan-European Stoxx 600 index closed 0.5% higher at 257.0

The Greek ASE Composite rallied 5.1% to 744.26, as

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January 24th, 2012 Published by: IBTim

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 inBrussels 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 theFTSE  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 CairnEnergy PLC added 0.6%.

ASIAN 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 tradi

1.8% higher Monday, having held in positive territory througho

the session on a stronger euro and hopes of an improving dema

 picture.

LME three-month copper ended the PM kerb at $8,364 a metric t

well up on Friday's close of $8,219/ton. The red metal, which

 priced in dollars, gained from a stronger euro as traders shrugged o

the apparent lack of progress in debt negotiations between the Gre

government and its private creditors.

Earlier in the session the euro had reached its highest level agai

the dollar since Jan. 4. Data showing record-high copper impo

into China, the world's largest consumer of the metal, also help

to shore up sentiment for the industrial commodities. The b

 performing metals, however, were lead--which gained 2.8%--a

zinc--which gained 2.3%.

Turnover was lower than normal given the closure of Asian mark

for the Lunar New Year holiday, and analysts say the met

remain vulnerable to heavy selling should the broader markets mo back into "risk-off" mode. Crude-oil futures gained Monday as

European Union imposed an import ban on Iranian oil, leading

concerns about supplies.

Iranian authorities have threatened to close the Strait of Hormu

a key shipping lane for the oil trade, and disrupt oil supplies

retaliation against the ban. Light, sweet crude for March delivery

the New York Mercantile Exchange settled 1.3% higher at $99.5

 barrel.

Gold and silver futures both settled at six-week highs as a weak

dollar boosted demand for alternative investments amid a mur

economic outlook. Gold for February delivery, the most acti

contract, rallied $14.30, or 0.9%, to settle at $1,678.30 a troy ounon the Comex division of the New York Mercantile Exchange. T

was the highest settlement price since settling at $1,716.80 a tr

ounce Dec. 9. The most actively traded silver contract, for Mar

delivery, settled up 59.5 cents, or 1.9%, at $32.270 a troy ounce

the Comex division of the New York Mercantile Exchange.This w

the highest settlement price since settling at $32.627 a troy oun

Dec. 7.

Australian Dollar Outlook 

The AUD has risen to a 3 month high overnight, hitting USD 1.057

as renewed optimism out of the European region sees an increasedemand for the riskier AUD.

Australia: Despite an agreement yet to be reached between Gree

and the private sector creditors, comments from the some of

regions finance ministers confirmed that an agreement was "taki

shape", which gave investors hope that all will be rectified shortl

As a result, the EUR/USD has risen back above USD1.3000 a

has taken the AUD up for the ride. Currently the AUD is tradi

at USD1.0530. Yesterday during our local session the Produc

Price Index (PPI) figures were released which came in lower th

expected.

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Markets were expecting a rise of 0.4% over the fourth quarter, with

results actually coming in just below that at 0.3%. The annual rate

was up to 2.9% for the year. While there is only very little correlation

 between the CPI and the PPI, many believe this could indicate an

overall down trend in inflation.

All investors will be watching for the CPI results due out on

Wednesday which will give further guidance as to the next move by

the RBA come February.

Expect a fairly lacklustre session today with no local data to be

released and the Chinese markets still shut for their Chinese New

Year celebrations.

Majors: As mentioned above, comments from France's

finance minister and some oversubscribed bond auctions in

France, Germany and Slovenia were the main catalyst for the

overnight rally. Many investors are continuing to wait for an

agreement between Greece and their private sector creditors, and

news from French Minister Francois Baroin that the deal was 'taking

shape' injected confidence to the market. Greece which doesn't have

enough money to meet its bond re-payments which are due in Marchis try to convince its creditors to swap their current bonds for longer 

term debt. This as well as the increased demand for the sovereign

debt auctions overnight has reassured the markets that progress is

 being made in the ailing region.

It seemed like the currencies were the big winner overnight, as the

equity markets in the US were broadly unchanged and in Europe only

small gains were seen.