US consumer confidence rose from 49.9 to 54.1 in November - ahead of market expectations and its highest reading in five months. The expectations index also rose to a six month high. The ISM Chicago business barometer rose from 60.6 to 62.5 in November. The S&P Case-Shiller composite index showed home prices in 20 metropolitan areas declined 0.8pct in September.

European shares fell on Tuesday as fears that the continent´s debt crisis could spread drove stocks lower. Investors continued to sell-off banking shares. The peripheral benchmark indices including Portugal, Spain and Italy were sharply weaker. The FTSEurofirst index fell by 0.2pct with the UK FTSE down 0.4pct and German Dax lower by 0.1pct. For the month the FTSEurofirst index lost 1.8pct - the biggest monthly loss since May.

US sharemarkets recovered from sharp early losses on Tuesday. The early weakness was driven by euro zone debt concerns but the better than expected US economic data supported investor sentiment. However reflecting the short-term uncertainty the CBOE volatility index rose 7pct. At the close of trade, the Dow Jones was lower by 46pts or 0.4pct, after earlier being down 100pts. The S&P 500 was down 0.6pct and the Nasdaq was lower by 27pts or 1.1pct. For the month the Dow fell 1pct, the S&P500 lost 0.2pct and the Nasdaq gave back 0.4pct.

US treasuries rose on Tuesday (yields lower) as contagion worries in Europe added to the safety bid for US bonds. Bond purchases by the Federal Reserve also supported US treasuries. The Fed bought $6.81 billion of treasuries with maturities between 2014-2016. US 2yr yields fell 6pts to 0.46pct, and US 10yr yields fell 2pts to 2.80pct.

The Euro fell to a 10-week low against the US dollar on persistent worries about euro zone sovereign debt. The Euro eased from highs of US$1.3135 to US$1.2975, heading into the US close near US$1.3010. The Aussie dollar fell from highs of US96.35c to US95.50c, heading into the US close near US95.85c. And the Japanese yen eased from levels near 84.10 yen per US dollar to JPY83.45, ending US trade near JPY83.65.

US crude oil prices fell on Tuesday as the US dollar strengthen on the Euro zone debt concerns. The Nymex crude oil contract fell by US$1.62 or 1.9pct to US$84.11. For the month oil futures rose 3.3pct - the third consecutive month of gains.

Base metal prices rose on the London Metal Exchange on Tuesday. Nickel rose 2.8pct, while other metals gained between 2.2-0.4pct. And the gold price rose, lifted by safe-haven flows. The Comex gold futures price rose by US$17.50 an ounce to US$1,383.50.

Ahead: In Australia, GDP for the September quarter and PMI figures are released. In the US, the Federal Reserve Beige Book, ISM manufacturing, construction spending and vehicle sales are released.

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