Australian Market Update

Australian shares are set for a modestly stronger start after France and Germany called for a new EU treaty with tougher budgetary rules to deal with the eurozone debt crisis.
Stocks markets rose on the proposal, but Wall Street pulled back on reports later in the day that ratings agency Standard & Poor's has warned Germany, France and four other eurozone nations they risk losing their triple A ratings.

At 0713 AEDT on Tuesday, the December share price index futures contract was up six points at 4,324.
In economic news, the Reserve Bank of Australia (RBA) holds its December board meeting and announces its interest rate decision at 1430 AEDT.

On Monday, the benchmark S&P/ASX200 index gained 33.3 points, or 0.8 per cent, to 4,321.3, while the broader All Ordinaries index gained 33.2 points, or 0.8 per cent, to 4,379.5.