QBIEY QBE Insurance Group Ltd (PK)

2303 GMT [Dow Jones] Australia's S&P/ASX 200 may rise after offshore markets put aside concern about Cyprus, and took a "glass-half full" view of mixed U.S. economic data. U.S. February durable goods rose 5.7%, topping expectations, although non-defense capital goods excluding aircraft, a proxy for business spending plans, fell the most since July. Case-Shiller's January 20-city home price index rose 1%, with the annual rate hitting a six-year high of 8.1%. But February new home sales fell 4.6% to 411,000, the biggest fall in two years, and the Conference Board's U.S. February consumer confidence index fell to 59.7 vs 67.5 expected. The data left open the question as to whether U.S. economy has become self sustaining. But reasonable valuations, combined with central bank stimulus and limited prospects of returns on bonds may continue to underpin equities, particularly if the S&P 500 hits a record high, amid expectations of a strong U.S. earnings period starting April 8. The S&P 500 rose 0.8% to 1563.77, its highest close since October 2007, and just shy of its record high of 1565.15. But fears that depositors in crisis-hit euro-zone nations could face haircuts similar to those imposed on Cyprus may continue to restrain equities. Cypriot banks are due to reopen Thursday with limits on withdrawals to prevent capital flight. Investors will also be watching China, where the swap market is signalling interest rate increases for the first time since 2011. ADRs suggest BHP (BHP.AU) will rise 0.6% to A$32.13, with Nymex crude oil up 1.6%. JPM has upgraded Fortescue (FMG.AU) and CBA has upgraded QBE (QBE.AU). The index closed down 0.8% at 4950.2 Tuesday. (david.rogers1@wsj.com)

 
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