US personal income and personal spending were both largely unchanged in June - with results below market expectations. The core personal spending price index was also unchanged to be up 1.1pct over the year. US factory orders fell 1.2pct in June. And pending home sales fell 2.6pct to record lows.

European shares were mixed on Tuesday with solid corporate earnings balancing soggy US economic data. Miners fell in response to lower metal prices. In London trade shares in BHP Billiton fell 0.7pct with Rio Tinto down 0.5pct. The FTSEurofirst index was largely unchanged with the UK FTSE down 0.63pts or less than 0.1pct while the German Dax was higher by 0.3pct.

US sharemarkets eased from 10-week highs on Tuesday in response to disappointing earnings and economic data. Shares in Proctor & Gamble lost 3.4pct after posting its latest profit result. The Dow Jones fell by 38pts or 0.4pct with the S&P 500 down 0.5pct and the Nasdaq fell almost 12pts or 0.5pct.

US longer-term treasuries rose on Tuesday (yields lower) as investors booked profits in some equities and commodity markets and moved money into bonds. Weaker-than-expected economic data added to the appeal of bonds. US 2yr yields fell 4pts to a record low of 0.53pct and US 10yr yields fell by 6pts to 2.91pct.

The US dollar continued to lose ground against major currencies as US economic data disappointed. The Euro rose from lows near US$1.3145 to US$1.3260 in European and US trade to end near US$1.3230. The Aussie dollar rose from US90.70c to near US91.50c, ending US trade near US91.30c. And the Japanese yen strengthened from 86.50 yen per US dollar to JPY85.70, before ending US trade near JPY85.85.

US crude oil rose to fresh three-month highs on Tuesday as the US dollar eased. A weaker greenback improves the purchasing power for buyers in Europe and Asia. Traders also expect data to be released on Wednesday to show a fall in US crude stocks. The Nymex crude oil contract rose by US$1.21 or 1.5pct to US$82.55. London Brent crude rose by US$1.87 to US$82.69 a barrel.

Base metal prices eased for the first time in five days on the London Metal Exchange on Tuesday as investors took profits. The exception was lead, up 0.3pct, but other metals lost between 0.6-1.8pct. And the Comex gold price rose in line with the oil price and a softer greenback, lifting US$2.10 an ounce to US$1,187.50. Gold traded from US$1,181.60 to US$1,193.00 an ounce.

Ahead: In Australia, international trade, car sales, ABS house prices and the Performance of Services index are released. AXA Asia Pacific and West Australian Newspapers release earnings. In the US the ADP employment index and ISM services index and Newscorp quarterly results are released.