The US ISM manufacturing gauge rose to the highest level in more than six years in January (highest since May 2004), lifting from 58.5 to 60.8. The employment gauge was the highest since April 1973. But construction spending fell by 2.5pct in December to the lowest level since July 2000.

The global manufacturing gauge rose to a 9-month high of 57.2 in January.

An estimated 200,000 Egyptians massed in central Cairo on Tuesday, calling for an end to the reign of President Mubarak.

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European shares posted the biggest gains in three weeks in response to strong global manufacturing data. And mining shares posted solid gains in response to higher metal prices. In London trade shares in BHP Billiton rose by 2.1pct with Rio Tinto up 1.5pct. The FTSEurofirst index rose by 1.4pct with the UK FTSE up 1.6pct and the German Dax was higher by 1.5pct.

US sharemarkets rose on Tuesday in response to better-than-expected economic data and corporate earnings. Shares in drugmaker Pfizer rose by over 5pct after its earnings topped estimates. At the close of trade, the Dow Jones index was up by 148pts or 1.3pct with the S&P 500 up 1.7pct and the Nasdaq was higher by 51pts or 1.9pct.

US treasuries fell again on Tuesday (yields higher). Stronger-than-expected economic data and solid earnings results caused investors to embrace equities in preference to government bonds. US 2yr yields rose by 5pts to 0.62pct and US 10yr yields rose by 7pts to 3.445pct.

The US dollar fell again against major currencies In European and US trade on Tuesday. The Euro rose from lows near US$1.3700 to US$1.3840, and was near US$1.3830 in late US trade. The Aussie dollar rose from lows around US100.15c to US101.50c, and was around US101.15c in late US trade. And the Japanese yen strengthened from 81.90 yen per US dollar to around JPY81.30, and was near JPY81.35 in late US trade.

Global crude oil prices were mixed on Tuesday. US prices eased in response to profit-taking after gains of more than 7pct in the past two days. But UK prices rose on reports of shipping delays in the Egyptian port of Alexandria. The Nymex crude oil contract fell by US$1.42 (1.5pct) to US$90.77 a barrel. London Brent crude rose by US73c to US$101.74 a barrel.

Base metal prices continued the good run on the London Metal Exchange on Tuesday, again posting solid gains. Metals rose between 0.8-2.4pct with nickel and copper doing best. And the gold price lifted on Tuesday as the US dollar fell. The Comex gold futures price rose by US$5.80 an ounce to US$1,340.30.

Ahead: In Australia, data on new home sales is released. In the US, the ADP employment index and Challenger job layoff series is released.

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