First Look: Your 10-sec guide to news from around the world

Moneycontrol Bureau

The US markets closed flat in narrow trading. The Dow logged a four-day rally, but gains were limited as investors remained reluctant to jump in amid ongoing "fiscal cliff" negotiations. The CBOE volatility index traded above 16. (Detailed Report)

President Obama continues his efforts to finalise a deal to avoid the fiscal cliff. “We've got to get past this whole situation where we manufacture crisis because of politics, which actually leads to less uncertainty, more conflict. But we're seeing the same thing in Washington. I am sure you've all heard the talks recently about a few deadlines we are facing in the few weeks when it comes to decisions on jobs, investments and tax. That debate is going to have a big impact on all of you.”

And in key data to watch out for in the US today, Federal Reserve begins its two-day policy meeting. Also watch out for international trade data, their trade gap is expected to expand to USD 42.8 billion.

European markets closed higher, but the Italian market bucks the trend, closes firmly in the red following political uncertainty, with prime minister Mario Monti announcing he will step down before his term ends.

In the other headlines from Europe, Greece has announced the extension of its debt buyback scheme. The offer to buy back its debt will be extended until today. Remember, the original deadline for the bond buyback scheme was last Friday. The upto 30 billion euro buyback will help Greece reduce its indebtedness - a key criteria to access funds in the second bailout plan.

Closer to home, Asian shares and the euro steadied on Tuesday, drawing support from expectations that the US Federal Reserve will take fresh economic stimulus measures this week. MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.1 percent to a 16-month high, led by Australian shares which gained 0.3 percent to their highest in nearly two months on a rise in metals and oil prices and hopes for Fed action.

In some corporate news, Standard Chartered has reached a deal to fork out USD 327 million to American authorities to resolve allegations that it violated US sanction laws. The US Department of Justice accused it of moving millions of dollars to the US financial system on behalf of customers in Iran.

Meanwhile, HSBC is bracing for a settlement of its own with US agencies for failing to curb money laundering. Wall Street Journal pegs the fine at USD 1.9 billion.

In the currency space, the euro recovers slightly from its 2-week lows versus the dollar ahead of the Fed meeting that kick starts today. The dollar index is marginally down to 80.3.

In commodities, crude prices continue to remain subdued. Brent crude trades above USD 107 levels and from the precious metals space, gold inches higher to USD 1,710 levels.

Sagar Salvi
sagar.salvi@network18online.com