The US Empire State manufacturing index for the New York region rose from +9.89 to +11.92 in January. The six-month business conditions index rose from +48.86 to +58.95. The National Association of Home Builders index was steady at +16 in January. And net capital inflow into the US was US$39 billion in November, up from a revised US$15.1 billion in October.

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European shares hit fresh 28-month highs on Tuesday as Euro zone finance ministers explored ways to beef up the region´s financial rescue fund. Banks led the gains. And mining stocks rose after strong production figures from Rio Tinto. In London trade shares in Rio Tinto rose 1.5pct while BHP Billiton rose 1.4pct. The FTSEurofirst index rose by 0.9pct, with the UK FTSE higher by 1.2pct while the German Dax gained 0.9pct.

US sharemarkets rose on Tuesday despite disappointing earnings from Citigroup. Shares in Citigroup were down 5.3pct. And shares in Apple fell by 2.0pct after the news on Monday that chief executive Steve Jobs had been granted a medical leave of absence. At the close of trade the Dow Jones index finished up by just over 50pts or 0.4pct with the S&P 500 up 0.1pct and the Nasdaq was up by just over 10pts or 0.4pct.

US longer-term treasuries fell on Tuesday (yields higher). While investors drifted from bonds to equities, some traders questioned whether an erroneous trade, thought to be around US$6 billion of 10-year and 30-year bonds, was behind the weakness. US 2yr yields were steady near 0.59pct but US 10yr yields rose 4pts to 3.366pct.

The US dollar eased against the Euro and Aussie dollar in European trade before tracking sideways in US trade. The Euro lifted from US$1.3300 and US$1.3450, before holding near US$1.3380 in late US trade. The Aussie dollar rose from lows near US99.30c to US100c, before easing to US99.80c in late US trade. And the Japanese yen eased from near 82.30 yen per US dollar to JPY82.80, and was near JPY82.60 in late US trade.

US crude oil prices slipped from 27-month highs on Tuesday. Supply fears eased after a restart to the Alaskan oil pipeline. And the International Energy Agency said that some OPEC members appear to have been quietly boosting production in recent months in response to higher prices, including Saudi Arabia. The Nymex crude oil contract fell by US16c to US$91.38 a barrel. But the Brent crude contract rose by US34c to US$97.77 a barrel.

Base metal prices were mixed on the London Metal Exchange on Tuesday. Zinc lost 0.8pct and lead fell 0.6pct while other metals rose between 0.5-1.0pct. And the gold price rose with a weaker dollar and on-going concerns about the Euro debt crisis driving demand. The Comex gold futures price was higher by US$7.70 an ounce to US$1,368.20.

Ahead: In Australia, data on consumer sentiment, imports and wealth are released. In the US, data on housing starts is due.