US existing home sales fell by 0.8pct in June to a 4.77 million annual rate. Economists had tipped a result near 4.90m. The median home price was up 0.8 per cent on a year ago. But the stock of unsold homes rose to a 8-month high of 9.5 months. Other data from the Mortgage Bankers Association showed that applications for US home mortgages rose 15.5pct last week to the highest level in four months.

European shares rose for the second straight day on Wednesday with banks again leading the gains. The STOXX Europe 600 Banks index rose by 3.7pct. Mining stocks also rose with BHP Billiton up 1.7pct in London trade and Rio Tinto up 1.3pct. The FTSEurofirst index rose by 1.3pct with the German Dax higher by 0.4pct and the UK FTSE was higher by 1.1pct.

US sharemarkets finished slightly lower on Wednesday as investors took profits ahead of a deadline to lift the US debt ceiling. Shares in Apple rose 2.7pct to US$386.90 a share with $400 proving a significant barrier. The Dow Jones fell by 15pts or 0.1pct with the broader S&P 500 also down by 0.1pct while the Nasdaq lost 12.3pts or 0.4pct. After the bell shares in Intel rose 1.8pct after posting earnings results.

US treasuries were mixed on Wednesday ahead as investors mulled whether US politicians would come to a deal on the debt ceiling. US 2yr yields fell by 1pt to 0.375pct but US 10yr yields rose by 5pts to 2.931pct.

Major currencies rose against the US dollar in European and US trade. The Euro rose from lows near US$1.4135 to US$1.4235, ending the US session near US$1.4215. The Aussie dollar rose from US107.10c to near US107.60c, before ending US trade near US107.35c. And the Japanese yen lifted from 79.10 yen per US dollar to JPY78.70, ending US trade at JPY78.75.

Benchmark crude oil prices rose again on Wednesday as the US dollar softened. A weaker greenback improves the purchasing power for buyers outside the US. Also US crude oil stocks fell for a seventh straight week and Chinese diesel oil shipments doubled in June. Nymex crude oil rose by US64c or 0.7pct to US$98.14 a barrel and London Brent crude rose by US$1.09 to US$118.15 a barrel.

Base metal prices were lower on the London Metal Exchange on Wednesday as investors took profits on uncertainty on debt deals in the euro zone and US. Tin was the exception, up 1.5pct., while other metals lost between 0.6-2.8pct with lead faring the worst. And the gold price slipped further from record highs with Comex gold down by US$4.20 an ounce to US$1,596.90.

Ahead: In Australia, Santos and Newcrest release production figures. In the US, the Philadelphia Fed index, home prices, leading index and weekly jobless claims data are released. Earnings from Morgan Stanley, Ford and Microsoft are released. In China the flash HSBC manufacturing index is issued.