US existing home sales fell by a less than expected 3.8pct to an annual rate of 4.81 million units in May. The result was the lowest reading in six months. The supply of previously owned homes on the market for sale rose from 9 to 9.3 months. The median home price was 4.6pct lower than a year ago at US$166,500.

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European shares recorded their biggest one day gain in two months on Tuesday as speculation mounted that Greece will get financial support. The Greek government is expected to survive a confidence vote. Greek banking stocks rose 6.9pct, while the STOXX Europe banking index gained 1.8pct. The FTSEurofirst index rose by 1.5pct with the German Dax higher by 1.9pct and the UK FTSE up 1.4pct.

US sharemarkets rallied for a fourth consecutive session on Tuesday as confidence grew that Greece would avoid a debt default. However volume was lighter than normal. The KBW banking index gained 1.1pct after touching a 1-year high earlier in the session. The CRB commodity index rose 0.6pct. The Dow Jones rose by almost 110pts or 0.9pct with the S&P 500 up 1.3pct and the Nasdaq gained 58pts or 2.2pct.

US treasuries were mixed on Tuesday as traders waited to see the outcome of the Greek confidence vote. Volume was light, and focus in the coming day will shift to Fed chairman Bernanke´s comments following the FOMC meeting. US 2yr yields were lower by 1pt to 0.375pct and US 10yr yields rose by 2pts to 2.978pct.

The Euro rallied for a fourth straight session against the US dollar on Tuesday as traders awaited the outcome of the Greek government confidence vote. The Euro rose from lows near US$1.4315 to US$1.4420, before ending US trade near US$1.4400. The Aussie dollar rose from lows near US105.60c to US106.15c before ending US trade near US105.05c. And the Japanese yen traded in a tight range between 80.05 yen per US dollar and around JPY80.25, ending US trade near JPY80.15.

US crude oil prices recorded modest gains on Tuesday following the improvement in risk appetite. The weaker US dollar also supported prices in early trade. The Nymex crude oil contract rose by US14c or 0.2pct US$93.40 a barrel and London Brent crude fell by US74c to US$110.95 a barrel.

Base metal prices recorded healthy gains on the London Metal Exchange on Tuesday in line with other commodities. Copper gained 0.8pct however gains were tempered by data showing that refined copper imports to China fell by 6.9pct in May to a 30-month low. And the gold price rallied for a sixth straight session. Comex gold rose by US$4.40 an ounce to US$1,546.40.

Ahead: In Australia, no economic data is released. In the US, the FOMC rate decision is expected.

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