US producer prices rose by 0.2pct in July, ahead of expectations for a 0.1pct gain. And core prices (excludes food and energy) rose by 0.4pct - well above forecasts for a 0.2pct gain. Tobacco prices surged by 2.8pct. And US mortgage applications rose for the third straight week, up 4.0pct. The refinancing index surged 8.0pct as interest rates fell.

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European shares ended mixed again on Wednesday as investors turned their attention to company earnings and away from economic and political news. Mining stocks rose in line with metal prices. In London trade shares in BHP Billiton rose by 0.4pct with Rio Tinto up 0.3pct. The FTSEurofirst index rose by 0.3pct and the French CAC40 rose 0.7pct but the German Dax was down by 0.8pct while the UK FTSE fell by 0.5pct.

US sharemarkets ended mixed on Wednesday. A weaker-than-expected outlook statement from Dell weighed on technology stocks. But blue chip shares rallied into the close to finish higher. Shares in Dell fell by 10.2pct but shares in Target rose by 2.5pct in response to strong sales figures. The Dow Jones ended 4pts higher or less than 0.1pct after being up at one stage by 124pts and also lower in afternoon trade by 84pts. The S&P 500 was up 0.1pct but the Nasdaq fell by 12pts or 0.5pct.

US long-term treasuries rose again on Wednesday (yields lower) as investors switched from short-dated securities to longer-dated stock in the search for higher yield. US 2yr yields were flat at 0.194pct while US 10yr yields fell by 6pts to 2.16pct.

Major currencies lifted against the greenback over the European and US sessions. The Euro rose from US$1.4330 to US$1.4515, ending the US session at US$1.4440. The Aussie dollar rose from US104.45c to US106.00c, ending US trade near US105.50c. And the Japanese yen lifted from 76.70 yen per US dollar to JPY76.40, ending US trade near JPY76.50.

Global crude oil prices rose on Wednesday. A weaker US dollar added buying support while US government data showed a sharp drop in gasoline stockpiles in the latest week. Restraining prices were continued concerns about global economic growth and a rise in crude oil stocks. Nymex crude oil rose by US93c or 1.1pct to US$87.58 a barrel and London Brent crude rose by US$1.47 to US$110.60 a barrel.

Base metal prices were generally higher the London Metal Exchange on Wednesday as the US dollar eased. The exception was tin, down 0.6pct. Other metals rose between 0.5-1.6pct. And the gold price edged up to fresh record highs with Comex December gold up by US$8.80 an ounce to a record US$1,793.80.

Ahead: In Australia, average weekly earnings data is released. Earnings are expected from AMP, ASX, Downer EDI, Adelaide Brighton, Wesfarmers, APN News and Media. In the US, data on consumer prices is released. together with the leading index, weekly jobless claims and existing home sales

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