US durable goods orders fell by 4.0pct in January, below expectations for a fall of 1pct. Excluding transport, orders fell by 3.2pct. The fall was blamed on expiration of a tax incentive at the end of 2011. US consumer confidence rose from 61.5 to a 12-month high of 70.8. The Richmond Fed manufacturing index lifted from +12 to a 12-month high of +20. And the S&P/Case Shiller home price series fell 0.5pct in December as expected.

European shares rose modestly on Tuesday with the benchmark FTSEurofirst 300 index up by 0.2pct. Investors weren´t inclined to take big positions ahead of the next round of European Central Bank (ECB) liquidity operations - LTRO. The UK FTSE rose 0.2pct and the German Dax rose by 0.6pct. And miners were higher with BHP Billiton up 1.5pct in London trade and Rio Tinto up 0.8pct.

US sharemarkets held in a tight range with investors reluctant to take on new positions ahead of the end of the month. But shares in Office Depot soared by 18pct in response to positive earnings data. The Dow Jones index held in a +40/-30 point range and at the close of trade the Dow was up by 23pts or 0.2pct to 13,005 - above 13,000 for the first time since May 2008. The S&P 500 was up 0.3pct and the Nasdaq was up by 20pts or 0.7pct.

US long-term treasury prices were flat on Tuesday. Investors were reluctant to take on new positions ahead of testimony by the Federal Reserve chairman and the ECBs liquidity operations. US 2yr yields were largely flat at 0.29pct and US 10yr yields were up less than 1pt to 1.936pct.

Major currencies were again mixed against the greenback in European and US trade on Tuesday. The Euro held between US$1.3390 to around US$1.3470, and was near US$1.3465 in late US trade. The Aussie dollar eased from highs around US107.85c to near US107.30c, and was at US107.70c in late US trade. And the Japanese yen held between 80.32 yen per US dollar and JPY80.77 and was near JPY80.48 in late US trade.

Benchmark crude oil prices fell again on Tuesday. Economic data was mixed with consumer confidence higher and durable goods orders lower. But profit-taking was again apparent as the end of the month drew near. US Nymex fell by US$2.01 or 1.9pct to US$106.55 a barrel while London Brent crude fell by US$2.62 to US$121.55 a barrel.

Base metal prices were mixed again on Tuesday. Tin rose by 1.5pct and zinc rose 1.2pct. Other metals were little changed except nickel which lost 1.9pct. The gold price rose for the first time in three days on Tuesday as the US dollar eased with the Comex April gold price up by US$13.50 or 0.8pct to US$1,788.40 an ounce. But silver out-performed, lifting 4.6pct to a 5-1/2 month high.

Ahead: In Australia, earnings are expected from Harvey Norman and WorleyParsons. Retail trade data and private sector credit are released.

In the US, Federal Reserve chairman Ben Bernanke delivers testimony to Congress. The Beige Book is released together with revised GDP data and the Chicago purchasing managers index. In Europe details of the long-term refinancing operation (LTRO) are released.