DJIA    up 12    at 12,890

S&P    up  2    at  1,349

US stock index futures are inching higher this morning, although given the substantial moves in Asian Pacific markets overnight the US reaction looks muted. European equity markets are also more buoyant than their US counterparts, although all risk assets are benefiting so far from a stronger euro.

Despite numerous delays and missed deadlines, investors have convinced themselves that Greece is about to finalise details of a debt swap with bondholders, and its policymakers are close to accepting further austerity measures. Agreement on the latter will allow the EU/IMF/ECB troika to finalise the second Greek bailout package. But often it is better to travel than to arrive, and the austerity measures already in place have contributed to a slump in Greek budget revenues. Further cuts in spending will only exacerbate current troubles. Traders should bear this in mind once any agreement is announced.

There is no US data due out today but there are earnings reports from Cisco, Groupon, CVS Caremark, Time Warner, Visa and Wholefooods. So far the fourth quarter season has been mixed, but once again investors are giving companies the benefit of the doubt even as analysts continue to cut earnings estimates for the next quarter. FOMC (voting) member Williams speaks later, but yesterday's testimony from Ben Bernanke has convinced most investors that the Federal Reserve stands ready to supply additional liquidity to the markets.