US consumer confidence rose from 51.0 to 53.5 in August, above expectations for a result near 50.5. The S&P/Case Shiller home price index for 20 metropolitan areas showed a 0.3pct rose in seasonally adjusted terms in June, above forecasts for a 0.2pct gain. But the Chicago purchasing managers index eased from 62.3 to 56.7 in August.

According to minutes of the August 10 Federal Reserve meeting, committee members would consider "additional policy stimulus if the outlook were to weaken appreciably further." Most members thought growth would be "more modest during the second half of 2010 than they had anticipated."

European shares rose on Monday, with investors encouraged by US economic data and merger & acquisition news. The FTSEurofirst index rose by 0.1pct while the UK FTSE lifted by 0.5pct and the German Dax gained 0.2pct.

US sharemarkets finished mixed on Tuesday with encouraging economic data balanced against cautious comments from the Federal Reserve and month-end position squaring. The Dow Jones rose by 5pts or 0.1pct with the S&P 500 up 0.41pts or less than 0.1pct but the Nasdaq eased 6pts or 0.3pct. Over the month the Dow Jones lost 4.3pct with the Nasdaq down 6.2pct.

US treasuries rose on Tuesday (yields lower) after Federal Reserve members noted the slowdown in the economy in recent months. US 2yr yields fell by 3pts to 0.477pct and US 10yr yields fell by 7pts to near 2.47pct. US 10yr yields recorded the biggest monthly decline since November 2008.

Major currencies were largely directionless against the greenback in European and US trade on Tuesday. The Euro held between US$1.2625 to US$1.2740, ending US trade near US$1.2680. The Aussie dollar drifted between US88.55c to US89.20c, ending US trade near US89.10c. And the Japanese yen strengthened from 84.60 yen per US dollar to near a 15-year high of JPY83.85, ending US trade near JPY84.10c.

US crude oil prices fell for a second straight day on Tuesday on concerns about high oil supplies and soft demand. Analysts fear that Hurricane Earl will cause flooding on the US East Coast, crimping gasoline demand in the upcoming holiday weekend.

The Nymex crude oil contract fell by US$2.78 or 3.7pct to US$71.92. London Brent crude fell by US$1.96 to US$74.64 a barrel. Base metal prices fell on the London Metal Exchange on Tuesday, falling between 0.1-1.7pct. Nickel recorded the biggest fall followed by zinc, down 1.5pct. But the Comex gold price was higher on Tuesday, edging closer to record highs, in response to safe-haven buying by investors. Comex gold futures rose by US$11.10 an ounce to US$1,250.30.

Ahead: In Australia, GDP (economic growth) figures are released. In the US the ISM manufacturing index, ADP employment index, car sales and construction spending data are released.