International markets puts in a mixed performance overnight with Europe suffering through another session of heavy falls but US markets rallying into the close.

The French market slipped to a two-year low overnight and other eurozone markets slumped with banking stocks hit hard.

BNP Paribas lost 12% whilst Societe Generale plummeted 11% to a level not seen since 1992.

When it was all said and done the FTSE was down 85 points (-1.6%), whilst the CAC shed 4% and DAX gave up 2.3%.

US markets opened poorly on the back of the leads from Europe, with the Dow tumbling as much as 179 points soon after the open.

In the last hour of trade, however, US stocks turned around amid reports from the Wall Street Journal that a Chinese sovereign wealth fund is in talks to buy large amounts of Italian bonds.

By the close the Dow Jones has added 69 points (+0.6%) to settle at 11061, whilst the S&P 500 gained 0.7% and the Nasdaq jumped 1.1%.

The euro retreated, touching its lowest level since 2001 against the yen amid speculation German Chancellor Angela Merkel is preparing for Greek default.

The Canadian dollar rallied from below parity against the greenback as risk aversion eased following the report of China and Italy being in discussion.

Crude oil rose for the first time in three sessions, adding 1.1% to settle at US$88.19 a barrel, whilst gold fell for a second consecutive session, shedding 2.5% to close at US$1813 an ounce.

Today's session will bring us data in the form of the NAB business confidence reading, at 11:30am, AEST.