U.S. STOCK MARKETS

The Dow fell Tuesday, as investors looked past a host of positive economic signals and ahead to the Federal Reserve's policy-setting statement, though the blue-chip benchmark ended July with its ninth monthly advance in 10.

The Dow Jones Industrial Average fell 64.33 points, or 0.5%, to close at 13008.68. The Dow added 1% in July.

Stocks were confined within a tight 76-point range Tuesday, the narrowest moves for blue chips in nearly two months.

Investors were focused on the Fed's policy-setting committee, which commenced a two-day meeting on Tuesday.

Recent overtures from European central bankers that additional stimulus measures could be on the way have helped fuel stocks, and heightened anticipation for the Fed to signal moves of its own when officials release a policy statement Wednesday afternoon.

On Thursday, policy makers at the ECB and the Bank of England also will conclude meetings. The Standard & Poor's 500-stock index fell 5.98 points, or 0.4%, to 1379.32, and the Nasdaq Composite Index fell 6.32 points, or 0.2%, to 2939.52.

For the month, the S&P 500 gained 1.3%, while the Nasdaq climbed 0.2%. Consumer-discretionary stocks were the worst performers Tuesday.

High-end leather goods maker Coach slid, leading declines on the S&P 500, after quarterly revenue fell shy of analysts' estimates and the company provided a downbeat outlook for the year.

Pfizer rose 1.4% after the pharmaceutical company reported second-quarter earnings and revenue that exceeded expectations.

U.S. Steel jumped 9.1% after it posted better-than-expected results, which eclipsed its steep drop in sales at the company's flat-rolled products segment.

Markets moved little on U.S. economic readings that were slightly more upbeat than expected. Home prices rose in May for the second straight month, according to Standard & Poor's Case-Shiller home-price indexes.

The Chicago purchasing manager's index, a barometer of manufacturing health, beat expectations and rose in July, while a separate reading showed U.S. consumer confidence rose more than expected in July.

Personal income in June increased and slightly topped forecasts, but the savings rate reached its highest point in a year, evidence that consumers remain reluctant to spend.

EUROPEAN STOCK MARKETS

Earnings disappointment weighed on European stocks Tuesday after disappointing earnings from Swiss bank UBS AG, oil major BP PLC and others, while uncertainty over prospects for bold action by the European Central Bank grew after remarks attributed to a Bundesbank official.

The Stoxx Europe 600 index broke a three-day winning streak, dropping 1% to close at 261.38. For the month, however, it ended 4.1% higher.

Stock markets were sent deeper into negative territory in afternoon action, after CNBC reported an unidentified official from Germany's Bundesbank as saying the institution wants monetary policy to focus strictly on price stability, indicating it isn't in favor of restarting the ECB's bond-buying program.

Swiss bank UBS posted one of the biggest losses in the pan-European index, off 5.9%, as second-quarter earnings fell short of analyst expectations.

Heavyweight oil producer BP PLC fell 4.4% after adjusted second-quarter profit sank 96% as it took a massive write-down.

On the data front, figures on the currency area's unemployment showed a steady rate of 11.2% for June, a record but unchanged from May's upwardly revised figure.

Among country-specific news, seasonally adjusted data out of Germany showed the number of unemployed workers rose 7,000 in July, while the unemployment rate remained unchanged at 6.8%.

German stocks were among best performers in Europe, with the DAX 30 index closing slightly lower at 6,772.26 and ending the month 5.5% higher.

Infineon Technologies AG surged 6.7% after it said it would cut back sharply on investments planned for fiscal 2013 to safeguard operating margins.

Pharmaceutical and chemicals firm Bayer AG added 1.2% after it raised its full-year outlook due to strong demand for agricultural products.

The CAC 40 index lost 0.9% to 3,291.66, but closed out the month with a 3% gain. BNP Paribas SA fell 3.3% and Michelin declined 2.8% after J.P. Morgan Cazenove cut the stock to neutral from overweight.

Drug maker Sanofi SA rose 1.3%. In the U.K., BP and banks weighed on the FTSE 100 index, which lost 1% to 5,635.28, but gained 1.2% on a monthly basis. HSBC Holdings PLC shed 1.7%, while Standard Chartered PLC fell 2.7%.

ASIA-PACIFIC STOCK MARKETS

Most Asian markets advanced Tuesday on continued hopes for policy easing from major global central banks and some positive earnings reports, with Japanese and Hong Kong stocks among those clinching a fourth straight day of gains.

South Korea led the region's gains, with the Kospi up 2.1%. Hong Kong's Hang Seng Index climbed 1.1%, and Japan's Nikkei Stock Average rose 0.7%.

Defying the regional trend for the second time this week, China's Shanghai Composite Index dropped 0.3% to 2,103.63, finishing at its worst level since March 2009.

The performance capped a mixed month for regional markets. China's Shanghai Composite was the worst performer among major benchmarks, dropping 5.5% in July, followed by a 3.5% decline for the Nikkei.

The Hang Seng Index climbed 1.8% and the Kospi added 1.5% during the month. Earnings reports and expectations were among the drivers for the Japanese market Tuesday.

Panasonic Corp. jumped 4.6% after the Nikkei newspaper reported that it will likely swing back to profit in the April-June quarter, with group net income estimated at Y10 billion, compared with a Y30.3 billion loss in the year-earlier period.

Tech and industrial conglomerate Hitachi rose 2% after reporting its quarterly profit more than doubled from the year-earlier period to Y7 billion.

Renesas Electronics Corp. soared 16.4% after another Nikkei report that shareholder Hitachi will provide it with Y17.5 billion of financing.

In Hong Kong, a 0.6% gain for heavyweight stock HSBC Holdings PLC helped support the Hang Seng Index.

HSBC's London shares rallied 2.3% Monday, although the lender posted lower profit for the first half of the year as it set aside cash to cover possible fines related to a U.S. money-laundering probe.

Hopes for monetary easing by the Fed and the ECB helped lift several other stocks around the region.

In Hong Kong, banks and property developers were among the sectors to benefit. Industrial & Commercial Bank of China Ltd. climbed 3% and China Construction Bank Corp. rose 3.4%, while Hang Lung Properties Ltd. advanced 3.8%.

Energy shares were generally higher around the region as Nymex crude-oil prices hovered around $90 a barrel. Inpex Corp. added 1.7% in Tokyo, and Cnooc rose 1.4% in Hong Kong.

Technology and shipbuilding stocks were behind the rally in Seoul, with Samsung Electronics rising 2.7%, SK Hynix climbing 1.9% and Hyundai Heavy Industries rising 6.6%. Automobile and metals shares dragged in Shanghai, with Dongfeng Automobile down 3% and Jiangxi Copper off 2.7% in Shanghai; in Shenzhen, FAW Car lost 3.4% and Yunnan Tin shed 1.7%.

COMMODITIES

Base metals closed mostly lower on the London Metal Exchange Tuesday, with the complex drifting sideways as investors awaited cues from the macro arena.

At the close, LME three-month copper was up 0.2% at $7,559 a metric ton. Nickel was the largest faller, down 2.3% at $15,865/ton. Crude-oil futures prices settled 1.9% lower Tuesday as investors adjusted positions ahead of a scheduled statement Wednesday from the U.S. Federal Reserve's policy-making board.

Nymex September-delivery crude oil settled down 1.9%, or $1.72 a barrel, at $88.06. A two-day drop has more than erased last week's gains, putting crude back to its lowest settlement price since July 13.

Gold futures fell for the first time in five trading sessions, as investors pared their bets on higher gold prices ahead of closely watched policy announcements from the Federal Reserve and the European Central Bank.

The most actively traded gold contract, for December delivery, fell $9.40, or 0.6%, to settle at $1,614.60 a troy ounce on the Comex division of the New York Mercantile Exchange. Compiled from MORRISON SECURITIES PTY. LTD.