US consumer confidence fell from 66.0 to 60.8 in May, well short of forecasts centred on 66.5. The Case-Shiller 20-city home price index fell by 0.2pct in seasonally adjusted terms in March to be 3.5pct lower over the year. The Chicago purchasing managers index fell from 67.6 to an 18-month low of 56.6 in May, well below forecasts of 62.6.

European shares rose on Tuesday on reports that Germany is planning to deliver more financial aid to Greece. But weak US economic data crimped gains. And mining stocks were mixed with BHP Billiton up 0.5pct in London trade with Rio Tinto down 0.5pct. The FTSEurofirst index rose by 0.8pct with the German Dax up by 1.9pct and the UK FTSE gained 0.9pct.

US sharemarkets posted solid gains on Tuesday on hopes for a resolution to the Greek debt crisis. But weak economic data put a brake on investor optimism. The Dow Jones rose by 128pts or 1.0pct with the S&P 500 up by 1.1pct and the Nasdaq rose by 38pts or 1.4pct. For the month the Dow Jones fell by 1.9pct after a 4.0pct gain in April. The S&P 500 fell by 1.4pct and the Nasdaq lost 1.3pct.

US treasuries rose modestly on Tuesday (yields lower) with weaker economic data tempering demand for risky assets like equities and commodities. US 2yr yields fell 3pts to 0.465pct and US 10yr yields fell by 1pt to 3.055pct.

The US dollar was mixed against major currencies in European and US trade on Tuesday. The Euro held between US$1.4365 and US$1.4425, before ending US trade near US$1.4390. The Aussie dollar eased from highs near US107.10c to US106.45c before ending US trade near US106.70c. And the Japanese yen held between 81.15 yen per US dollar and JPY81.75, before ending US trade near JPY81.50.

Crude oil prices rose on Tuesday. Supporting prices was investor optimism about a new plan to deal with the Greek debt crisis. There was also news of the closure of a pipeline between Canada and the US. A slightly weaker greenback also boosted the allure of commodities. But restraining optimism was weaker-than-expected US economic data. The Nymex crude oil contract rose by US$2.11 or 2.1pct to US$102.70 a barrel and London Brent crude rose by US$1.79 to US$116.46 a barrel. Over the month Nymex oil fell by 9.9pct.

Base metal prices were higher on the London Metal Exchange on Tuesday in line with a weaker greenback, except zinc, down 0.4pct. Other metals rose 0.2-1.7pct with copper and tin doing best. But the gold price eased modestly with Comex gold futures down by just US50c an ounce to US$1,536.80.

Ahead: In Australia, economic growth figures for the March quarter are released together with the Performance of Manufacturing index. In the US, the ISM manufacturing gauge is released together with auto sales.