International markets finished mostly in the green overnight as euro finance ministers come closer to a decision on Greece's bailout funds and positive housing starts data from the US. US housing starts in October rose 3.6%, the highest it's been in four years.

In Europe, UK's FTSE climbed 10 points (+0.2%) to settle at 5748 due in large part to Xstrata shareholders approving the $31 billion the merger with Glencore.

Germany's DAX added 49 points (+0.7%) to settle at 7173 whilst France's CAC gained 22 points (+0.7%) to settle at 3462.

In the US, equities were affected by the US data and Fed Chairman Mr. Bernanke's statement that the Fed doesn't have all the tools to staunch the effects of the fiscal cliff.

The Dow Jones lost seven points (-0.1%) to settle at 12789 whilst the S&P inched one point (+0.1%) higher to settle at 1388. The Nasdaq traded flat to settle at 2917.

In the commodity space, crude oil for January delivery fell $2.53 to settle at $86.75/barrel after Hamas said that a draft for a cease-fire agreement is being prepared. Meanwhile, gold futures for December delivery fell 0.6% to settle at $1723.60/oz as investors flocked towards the US dollar.

In the currency space, the yen fell against the greenback even after BoJ Governor, Masaaki Shirakawa, said that the opposition's stand on more aggressive monetary stimulus is not realistic.

The euro was little changed due to uncertainty with regards to the eurozone debt crisis. The US dollar advanced against most of its peers for the same reasons the euro traded flat.

Today will see the release of the MI leading index m/m (10:30am, AEDT)

Morning Market Update: Soft Leads is a post from: Australian Stock Report Market Pulse Blog