US existing home sales rose by 2.7pct to an annual rate of 5.36 million in January - against expectations for a fall. Compared with a year ago sales are up 5.3pct. The inventory of homes for sale eased further from 8.2 to 7.6 months of supply. However the median home price fell 3.7pct to $158,000 - the lowest since April 2002. US ICSC chain store sales rose 2.6pct in the past week. The ICSC expects comparable store sales to gain 2.5-3.0pct in February.

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European shares fell for the third straight session on Wednesday. The escalating tensions in Libya, drove crude oil prices higher and added to growing concerns about the impact on global growth. Energy and mining stocks led the declines. The FTSEurofirst index fell by 1.0pct, the German Dax was lower by 1.7pct and the UK FTSE lost 1.2pct.

US sharemarkets tumbled for a second straight session as the violence in Libya pushed oil prices to US$100 a barrel. Transport and manufacturing stocks were hit hard however the energy sector index managed to gain 2.1pct. The CBOE Volatility index rose a further 4pct. Shares of Hewlett-Packard fell over 10pct after it cut its 2011 revenue forecast. At the close of trade, the Dow Jones index was lower 106pts or 0.9pct with the S&P 500 lower by 0.6pct and the Nasdaq fell by 33pts or 1.2pct.

US treasuries eased on Wednesday (yields higher) following the previous sessions sharp rally. The treasury department will sell $29 billion in 7yr notes on Thursday. US 2yr yields rose 5pts to 0.75pct while US 10yr yields were higher by 2pts to 3.48pct.

The Euro rallied against the US dollar given rising inflationary pressures in the Euro zone. The Euro rose from early lows near US$1.3685 to highs around US$1.3780, and headed into the US close near US$1.3745. The Aussie dollar eased from US100.55c to US99.80c, and was near US100.15c in late US trade. And the Japanese yen lifted from 82.85 yen per US dollar to around JPY82.30, and was near JPY82.50 in late US trade.

US crude oil prices surged on Wednesday to 28-month highs touching over US$100 a barrel, as the revolt in Libya raised concerns that the unrest could spread to other oil producing nations. The Nymex crude oil contract finished up by US$2.68 or 2.8pct to US$98.10 a barrel. And London Brent crude rose by US$6 to US$111.78 a barrel.

Base metal prices were mixed on the London Metal Exchange on Wednesday, as the turmoil in the North Africa continued to dampen demand for riskier assets. Copper fell to a near one-month low down 1.6pct. And the demand for safe-haven gold gathered momentum. The Comex gold futures price was up by US$12.90 an ounce to US$1,414.00 - a fresh seven week high.

Ahead: In Australia, CAPEX data is released. Toll Holdings, Tatts Group, Ramsay Healthcare, IAG, Fairfax media and Air New Zealand are amongst those reporting earnings. In the US, new home sales and durable goods orders are released.

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