Global markets rebounded strongly overnight, with the S&P500 closing at a new record high for the first time in four sessions.

Fuelling the rally on Wall Street were reports Russian President, Vladimir Putin, ended military exercises near the Ukrainian border, easing tensions that rocked markets in the previous session.

The Dow soared 228 points (+1.4%) to 16396, the S&P500 put on 28 points (+1.5%) to 1874 and the Nasdaq added 75 points (+1.8%) to 4352.

The recovery on European markets was more pronounced, as the likelihood of an end to the Ukrainian crisis lowered the odds of Russia cutting off its gas exports to the region.

The UK FTSE jumped 1.7%, whilst the French CAC and the German DAX leapt 2.5% each.

Gold gave back most of its prior session gains, as the drop in tensions over Ukraine diminished the precious metal's safe haven appeal.

Oil was also hurt by the developments in the black sea, as the likelihood of crude supply disruptions from the region abated.

With markets back in risk on mode, the yen was sold off against other currencies like the greenback. The Aussie edged higher versus its US counterpart, after yesterday's RBA decision hosed down speculation of a rate cut.

In economic news, Australian 4Q13 GDP data is due for release today at 11:30am, AEDT.

Morning Market Update: Stepping Back from the Precipice is a post from: Australian Stock Report Market Pulse Blog