US export prices rose by 0.6pct in September while import prices fell 0.3pct. The lift in export prices exceeded forecasts of a 0.2pct gain while import prices largely met forecasts. And mortgage applications soared by 14.6pct in the latest week as lower mortgage rates boosted refinancing. The refinancing index rose by 21pct.

European shares hit three-week highs on Wednesday while the German Dax lifted to a two-year high with investors cheered by solid earnings results in the US and positive economic data. And mining shares soared with BHP Billiton up 4.2pct in London trade while Rio Tinto rose by 4.6pct. The FTSEurofirst index lifted by 1.4pct with the UK FTSE up 1.5pct 2pct and the German Dax higher by 2.1pct.

US sharemarkets rose on Wednesday following good earnings results from JP Morgan Chase and Intel. JP Morgan Chase reported a better-than-expected 23pct lift in earnings but its share price was down around 1.6pct. And shares in Intel lost around 2.7pct despite an upbeat forecast for fourth-quarter sales. The Dow Jones rose by 75pts or 0.7pct after being up 144pts at one stage. The S&P 500 rose by 0.7pct and the Nasdaq lifted by 23pts or 1.0pct.

US treasury prices rose slightly (yields lower) on Wednesday despite soft demand for a US$21 billion auction of 10-year notes. The auction attracted the second lowest yield ever. US 2yr yields fell by 1pt to 0.367pct while US 10yr yields fell 1pt to 2.433ct.

The Aussie dollar hit fresh 28-year highs against the US dollar overnight as gold prices rallied, while the Euro and Japanese yen tracked sideways. The Euro held between US$1.3915 and US$1.4000, ending US trade near US$1.3955. The Aussie dollar rose from lows around US98.35c to highs of US99.36c, closing US trade near US99.00c. And the Japanese yen traded between 81.70 yen per US dollar and JPY81.95, ending near JPY81.70.

US crude oil prices rose for the first time in three days in response to firm economic data in China, Europe and Japan. In China, crude oil imports were up 35pct in September on a year earlier. The Nymex crude oil contract rose by US$1.34 or 1.6pct to US$83.01 a barrel after hitting highs of US$83.45. London Brent crude rose by US$1.09 a barrel to US$84.59.

Base metal prices were mostly higher on the London Metal Exchange on Wednesday in response to encouraging economic data in Europe and Japan. Japanese machinery orders hit two-year highs in August while European production rose 1pct in the month. Lead rose 2.6pct and zinc lifted 1.7pct but aluminium lost 0.8pct. And the gold price hit fresh record highs of US$1,375 an ounce after a solid rally between midnight and 2am Sydney time. Comex gold rose by US$23.80 an ounce to US$1,370.50.

Ahead: In Australia, Bank of Queensland releases its annual results. Rio Tinto releases quarterly production data. In the US, producer prices, trade and jobless claims data is released.