US chain store sales rose 2.3pct last week compared with the prior week. Chain store sales are up 2.6pct on the same period a year ago. ICSC research expects March same-store sales to be between 0-2pct higher than a year ago.

European shares ended higher in a volatile trading session on Tuesday. Banking stocks continued to see weakness a day after Moody´s cut Greece´s credit rating. The Greek banking index fell 6.3pct. However the euro zone´s blue-chip Euro STOXX 50 index rose 0.5pct. Overall the FTSEurofirst index closed up 0.3pct, the German Dax and the UK FTSE were mostly flat.

US sharemarkets rallied on Tuesday as the slide in the oil price supported investor sentiment. Banking stocks were in favour after a upbeat forecast from Bank of America (up 4.5pct). The S&P financial index rose 2.2pct. At the close of trade, the Dow Jones was higher by 124pts or 1.0pct. The S&P 500 rose by 0.9pct and the Nasdaq was higher by 20pts or 0.7pct.

US treasuries fell on Monday (yields higher) as the slide in the oil prices saw investors tentatively switch into equities. Treasury´s sale of $32 billion in 3yr notes was met with relatively healthy demand. US 2yr yields rose 2pts to 0.72pct and US 10yr yields rose by 3pt to 3.55pct.

The Euro fell against the US dollar as concerns about the debt situation in peripheral euro zone countries outweighed expectations of an interest rate hike by the European Central Bank next month. The Euro fell from highs near US$1.3990, to around US$1.3865, and headed into the US close near US$1.3900. The Aussie dollar fell from highs of US101.35c to US100.55c, heading into to the US close near US100.95c. And the Japanese yen eased from 82.20 yen per US dollar to around JPY82.85, heading into the US close near JPY82.65.

US crude oil prices fell sharply after Kuwait´s oil minister commented that OPEC oil producers are considering raising production for the first time in more than two years. The Nymex crude oil contract fell by US42c or 0.4pct to US$105.02 a barrel. And the London Brent crude fell by US$1.98 to US$113.06 a barrel.

Base metal prices were mostly higher on the London Metal Exchange on Tuesday. The slide in the oil price eased concerns about inflation and allowed traders to focus on longer-term demand. Copper rallied off two-week lows up 0.3pct, however Nickel lost 2.4pct. The gold price eased on Tuesday as the improvement in risk appetite gave traders an excuse to lock in recent gains. The Comex gold futures price closed down US$7.30 an ounce at US$1,427.20.

Ahead: In Australia, housing finance and consumer sentiment data is due. RBA Governor Glenn Stevens speaks in London. In the US, data on wholesale inventories is released.

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