The US residential rental vacancy rate eased from 10.6pct to 10.3pct in the September quarter. Meanwhile US chain store sales rose by 0.2pct in October to stand 2.6pct higher than a year ago.

The Reserve Bank of India has increased interest rates for the sixth time this year, lifting the repurchase rate by 25 basis points to 6.25pct.

European shares rose for a fourth straight day in response to better-than-expected profits by energy companies. And mining shares rose in response to higher metal prices. In London trade shares in BHP Billiton rose by 1.9pct with Rio Tinto up 1.5pct. The FTSEurofirst index rose by 0.5pct to a six-month high, with the UK FTSE up 1.1pct and the German Dax higher by 0.8pct.

US sharemarkets rose on Tuesday with investors hopeful that the mid-term elections deliver a result that is positive for the economy. The expectation is that the Republicans will win the House of Reps and the Democrats retain control of the Senate. Investors believe that this gridlock will reduce political influence on the economy. The Dow Jones rose by 64pts or 0.6pct with the S&P 500 up 0.8pct and the Nasdaq was higher by almost 29pts or 1.1pct.

US longer-term treasuries rose on Tuesday (yields lower) in thin trade as traders reportedly covered short positions ahead of the Federal Reserve decision. US 2yr yields were steady at 0.347pct and US 10yr yields fell by 3pts to 2.59pct.

The Australian dollar returned to parity against the US dollar after the Reserve Bank rate hike. The Aussie dollar hit highs of US$1.0023 around 11.30pm Sydney time before ending US trade near US99.90c. The Euro rose from lows of US$1.3915 to US$1.4055, ending US trade near US$1.4030. And the Japanese yen eased from around 80.45 yen per US dollar to JPY80.95, before recovering lost ground and ending US trade near JPY80.70.

US crude oil prices hit six-month highs on Tuesday as commodity prices rallied in response to a weaker US dollar. A weaker dollar improves the purchasing power of consumers in Europe and Asia. The Nymex crude oil contract rose by US95c or 1.1pct to US$83.90.

Base metal prices again posted modest gains on the London Metal Exchange on Tuesday with most metals up around 1.0-1.6pct in response to a weaker US dollar. But zinc rose 0.2pct with aluminium up 2.6pct. China´s major copper consultancy group, Antaike, is also predicting a bigger copper deficit in China in 2011. And the Comex gold futures price rose by US$6.30 an ounce to US$1,356.90, after trading from US$1,350.20 to US$1,359.90.

Ahead: In Australia, the Performance of Services index and building approvals data are released. Westpac releases its profit result. In the US the Federal Reserve hands down its interest rate decision. The ISM services index is released.

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