The US Mortgage Bankers´ Association index eased 0.9pct in the latest week.

Reserve Bank New Zealand has left the cash rate at 3 per cent.

Car sales in India totalled 161,497 units in November, up 20.4pct on a year ago with trucks and buses - a key economic indicator - up 18.3pct. Motorcycle sales were up 15.6pct on a year ago.

China´s National Bureau of Statistics says it will now release its monthly data this Saturday, not Monday, as scheduled.

European shares hit 27-month highs, underpinned by good gains in banking and insurance stocks. But mining stocks eased. In London trade, shares in BHP Billiton fell by 2.1pct while Rio Tinto lost 3.0pct. The FTSEurofirst index rose by 0.4pct, underpinned by gains in France, Italy, Ireland and Spain. But the UK FTSE fell by 0.2pct and the German Dax eased by 0.4pct.

US sharemarkets largely marked time on Wednesday in the absence of key economic or corporate news. The Dow Jones traded in a 62 point range, and at the end of trade it was up 13 points or 0.1pct. The broader S&P 500 rose by 0.4pct while the Nasdaq was higher by almost 11pts or 0.4pct.

US treasuries slumped again on Wednesday (yields higher) as investors focussed a likely extension of Bush-era tax cuts. The tax cuts will spur economic growth while also keeping the budget deficit high. An auction of $21 billion of 10-year notes was better received than the previous day´s auction. US 2yr yields rose by 8pts to 0.62pct and US 10yr yields rose by 11pts to 3.24pct.

Major currencies largely tracked sideways against the greenback on Wednesday given the lack of market-moving economic or corporate news. The Euro held between US$1.3180 and US$1.3270, and was holding near US$1.3260 in late US trade. The Aussie dollar hovered between US97.50c and US98.35c, and was near US97.85c in late US trade. And the Japanese yen eased from near 83.70 yen per US dollar to JPY84.30, holding at JPY84.00 in late US trade.

US crude oil prices fell for a second straight day on Wednesday in response to increased inventories. US gasoline stockpiles rose by 3.8 million barrels last week while stocks of distillates lifted by 2.2 million barrels, both above forecasts. The Nymex crude oil contract fell by US41c to US$88.28 a barrel.

Base metal prices rose again on the London Metal Exchange on Wednesday, the exception being nickel, down 0.5pct. Aluminium rose 3.2pct and copper lifted 1.5pct while other metals edged only slightly higher. But the gold price slumped as safe-haven flows switched into US government bonds following recent sharp gains in yields. Comex gold futures fell by US$25.80 an ounce to US$1,383.20.

Ahead: In Australia, monthly employment data is released. In the US weekly unemployment claims data is released.

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