The US Conference Board reported that its consumer confidence index hit a 2-year low of 44.5 in August, down from 59.2 in July. The S&P/Case-Shiller home price index measure of 20 metropolitan cities eased by 0.1pct in seasonally adjusted terms in June. In unadjusted terms, prices were up 1.1pct.

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Minutes of the last Federal Reserve meeting revealed that some participants wanted to take bolder action to stimulate the economy but ´´were willing the accept that the stronger forward guidance as a step in the direction of additional accommodation.´´ At the meeting the Fed vowed to keep interest rates low for another two years.

European shares rose again on Tuesday in thin trade. UK shares led the way with investors playing catch-up after the market holiday on Monday. The FTSEurofirst index rose by 1.0pct with the UK FTSE up 2.7pct. Shares in both BHP Billiton and Rio Tinto rose 4.3pct in London trade. But mainland European markets were mixed with the German Dax losing 0.5pct, Italian shares down 0.2pct but Spanish shares up 0.5pct.

US sharemarkets finished with modest gains on Tuesday as investors mulled the latest economic data and minutes of the last Federal Reserve meeting. The Dow Jones had a volatile session, falling at the open to be down 110 points, before gaining to be up 91 points in late trade. The Dow lost 70pts in the last 15 minutes to end the day up 20pts or 0.2pct. The S&P 500 was also up by 0.2pct and the Nasdaq gained 14pts or 0.6pct.

US treasury prices rose on Tuesday (yields lower) as traders bet that more economic stimulus would be forthcoming. US 2yr yields fell by 2pts to 0.196pct and US 10yr yields fell by 8pts to 2.176pct.

The US dollar lost ground against the Euro and major commodity currencies over the US session. The Euro fell in European trade from US$1.4530 to lows near US$1.4385 before recovering to end US trade near US$1.4440. The Aussie dollar rose from lows around US106.15c to US107.20c, ending US trade near US106.80c. And the Japanese yen held between 76.60 yen per US dollar and JPY76.90, ending US trade at JPY76.65.

Global oil prices rose again on Tuesday. Commodities were generally higher in response to a weaker greenback and improved investor risk appetite and traders were watching new tropical storms forming other the Atlantic. Nymex crude oil rose by US$1.63 or 1.9pct to US$88.90 a barrel and London Brent crude rose by US$2.14 to US$114.02 a barrel.

Base metal prices rose on the London Metal Exchange on Tuesday in response to a weaker greenback and improved risk appetite of investors. Metals rose between 0.8-3.2pct with lead, nickel and zinc faring the best. And the gold price also was stronger in line with other commodities with Comex December gold up by US$38.20 an ounce or 2.1pct to US$1,829.80.

Ahead: In Australia, the RP Data-Rismark Home Value index is released together with private sector credit. In the US, the ADP employment index is released together with Challenger job layoffs.