The subdued theme continued on international markets overnight, with no major index moving more than half a percent.

In Europe, the FTSE shed 14 points (-0.2%) to settle at 5876, whilst the CAC (-0.1%) and DAX (-0.1%) also moved slightly lower.

There were reports that the ECB might be willing to exchange Greek bonds with the EFSF. In addition, a vast majority of officials remain adamant that no haircuts will be applied.

Elsewhere, the Wall Street Journal indicated that the concession by the ECB will contribute to the Greek debt reduction and the concession depends on the overall agreement to be set.

Stateside, the Dow Jones added six points to settle at 12884, whilst the S&P 500 (+0.2%) and Nasdaq (+0.4%) enjoyed slightly stronger gains.

US markets were soft early in the session but clawed back losses into the close - a pattern which has occurred many times recently.

Of the 315 companies in the S&P 500 that have reported earnings to date, 61% have come in above analysts´ expectations.

The Aussie dollar remained firm, holding at the US$1.08 handle, whilst the euro fluctuated against the dollar amid speculation Greek Prime Minister Lucas Papademos and coalition party leaders will fail to agree on terms required for a bailout.

Oil was slightly stronger, adding 30c to US$98.71 a barrel as investors weighed news of a lift in US crude inventories in the past week and ongoing tensions between Iran and western nations.

Most metals were weaker; nickel lost 1.4% whilst copper bucked the trend, adding 1.2% after China pledged support for the property market.

Gold was weaker, with the precious metal shedding 0.7% to settle at US$1,736 an ounce.

There is no major economic data slated for release today, although there is important CPI and PPI data due out of China at 12:30pm, AEDT, which could have an impact on our market.

In company news, Telstra has reported a 23% rise in first half profit to $1.47 billion dollars. The telco also declared an interim dividend of 14 cents, which was in line with analyst estimates.

Earnings are also expected from News Corp, Tabcorp, Stockland and Rio Tinto.

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Morning Market Analysis: Range Bound Aussie is a post from: Australian Stock Report Market Pulse Blog