US Federal Reserve Chairman Bernanke acknowledged the recent slowdown in the US economy however gave no indication that the central bank was considering further stimulus. Speaking at a banking conference in Atlanta, Bernanke said that "a large number of indicators have lost momentum" and "US economic growth this year has been somewhat slower than expected".

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US consumer credit rose by a larger than expected $6.25 billion during April after a downwardly revised $4.82 billion rise in March. The rise marked the seventh straight monthly increase. US ICSC chain store sales rose 0.4pct last week to be up 2.5 per cent on a year ago.

The broader measure of European shares fell for a fifth straight day on Tuesday on continued concerns about European sovereign debt concerns. Greek shares lost 2pct while the Greek banking index lost 3.7pct. However miners helped limit the losses with BHP Billiton up 0.7pct in London trade and Rio Tinto up 1.2pct. The FTSEurofirst index fell by 0.1pct but the German Dax gained 0.3pct, the UK FTSE was up almost 2pts.

US sharemarkets fell again in a volatile trading session on Tuesday. The bearish comments from Fed Chairman Bernanke about near term economic growth gave investors a reason to continue selling equities. The Dow Jones fell by 19pts or 0.2pct with the S&P 500 down by 0.1pct and the Nasdaq lost 1pt.

US short dated treasuries recorded modest gains after US Federal Reserve Chairman Ben Bernanke acknowledged a slowdown in the US economy. US 2yr yields fell 2pts to 0.409pct and US 10yr yields were flat at 2.994pct.

The US dollar extended losses against major currencies on Tuesday following the downbeat growth assessment by Fed Chairman Bernanke. The Euro rose from lows near US$1.4610 to US$1.4695, before ending US trade near US$1.4690. The Aussie dollar rose from lows near US106.75c to near US107.35c before ending US trade near US107.15c. And the Japanese yen held between 80.30 yen per US dollar and JPY79.75, ending US trade near JPY80.10.

Crude oil prices rose in choppy trade on Tuesday as investors attempted to gauge if OPEC oil ministers will raise production quotas at their meeting on Wednesday. Saudi Arabia did comment that it planned to raise output in June regardless of the OPEC result - limiting gains in US crude prices. The Nymex crude oil contract rose by US8c to US$99.08 a barrel. And London Brent crude rose by US$2.30 to US$116.78 a barrel.

Base metal prices were mostly higher on the London Metal Exchange on Tuesday supported by a weaker US dollar. And the gold price fell on Tuesday with Comex gold futures down by US$3.20 an ounce to US$1,544.

Ahead: In Australia, consumer sentiment and housing finance figures are released. In the US, the Federal Reserve Beige Book is released.

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