Greek

The draft bill for the three-year rescue package worth about 85 billion euros ($93 billion) in loans includes harsh spending cuts and tax hikes that Prime Minister Alexis Tsipras has said he has no option but to implement.

His radical left Syriza party won elections in January on promises of repealing similar budget austerity imposed in return for Greece's previous bailouts.

The projected budget deficit in Papua New Guinea's has been revised up, hitting 9.4 per cent, which is more than double last year's deficit and getting close to the 12.3 per cent figure which helped tip Greece into meltdown last year.

The budget implosion will come as a shock to leaders in PNG and also Australia, who have consistently played down the impact of corruption and sliding commodity prices.

KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was down 1.1 percent to 6,693 while the CAC-40 in France fell 0.4 percent to 5,085. Germany's DAX was 0.6 percent lower at 11,534. U.S. stocks were poised for a lower opening too, with Dow futures and the broader S&P 500 futures down 0.4 percent.

KEEPING SCORE: In Europe, Germany's DAX was flat at 11,732 while the CAC-40 in France rose 0.1 percent to 5,145. The FTSE 100 index of leading British shares was also flat at 5,787. U.S. stocks were poised for a subdued opening, with Dow futures and the broader S&P 500 futures largely unchanged.

GREECE RETREAT: For weeks, the Greek crisis has been the main driver in financial markets but now that discussions over a third bailout are set to begin, fears over the country's exit from the euro have faded — for a while at least.

Talks will resume following more than eight hours of talks on Saturday without any apparent breakthrough that will secure the country's future in the euro.

On leaving the meeting, Jeroen Dijsselbloem, the eurozone's top official, said there had been "in-depth" discussions, and highlighted the issue of "trust."

The official, who spoke on condition of anonymity because he's not authorized to talk publicly, says there's a general feeling in the room that the Greek proposals are "too little, too late" and as such, more proof of the government's commitment to follow through is required.

The Greek parliament early Saturday passed the bailout proposals package with 251 votes in favor and 32 against.

Greek Prime Minister Alexis Tsipras said that the legislature "has given the government a strong mandate to complete the negotiation," adding that "what matters now is the positive outcome."

Greece and its creditors held talks in Brussels on Tuesday to discuss how to keep the country from falling out of the euro. 

Reports out late in the day said European officials considered providing Greece with emergency funding to help it avoid defaulting on its debts. Greece has little time left before its banks run out of cash.

"It's all Greece all the time," said Burt White, chief investment officer at LPL Financial.