In US economic data, the Conference Board consumer confidence index fell from 103.2 to 98.7 in June (survey: 100). S&P/Case-Shiller home prices rose by 2.3% in April (survey: +2.8%). The FHFA house price index lifted 1.6% in April (survey: +1.4%). The Richmond Fed factory index fell from -9 to -19 in June (survey: -7). The goods trade deficit fell by US$2.4bn to $104.3bn in May (survey: -US$104.8bn). Wholesale inventories lifted 2.0% in May (survey: +2.1%).

European sharemarkets edged higher on Tuesday. The panEuropean STOXX 600 index rose by 0.3% with energy stocks up 2.0% as oil prices lifted. The German Dax index added 0.4% and the UK FTSE index gained 0.9%. In London trade, shares of Rio Tinto rose by 2.0% and BHP shares added 1.6%.

US sharemarkets tumbled on Tuesday after a report showed Americans grew more downbeat about the prospects for the US economy, dampening sentiment. Quarterly rebalancing of portfolios also fuelled volatility. Shares of technology heavyweights Amazon.com (-5.1%), Tesla (-5.0%), Microsoft (-3.2%) and Apple (-3.0%) were the biggest drags on indexes. The Dow Jones index closed down by 491 points or 1.6%. The S&P 500 index lost 2.0% and the Nasdaq index dropped by 343 points or 3.0%.

US treasuries were little changed on Tuesday. US Federal Reserve policymakers Mary Daly and John Williams promised further rapid interest rate hikes to bring down high inflation, but pushed back against growing fears among investors that sharply higher borrowing costs will trigger a steep US economic downturn. US 10-year yields fell by 1 point to near 3.18% but US 2-year yields rose by 1 point to near 3.12%.

Major currencies were weaker against the US dollar in European and US trade. The Euro fell from highs near US$1.0602 to lows near US$1.0504 and was near US$1.0520 at the US close. The Aussie dollar fell from highs near US69.63 cents to lows near US69.05 cents and was near US69.10 cents at the US close. And the Japanese yen eased from 135.36 yen per US dollar to JPY136.36 and was near JPY136.20 at the US close.

Global oil prices rose by over 2% on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly. Group of Seven (G7) leaders also agreed to explore ways to cap the price of Russian oil. The Brent crude price rose by US$2.89 or 2.5% to US$117.98 a barrel. And the US Nymex crude price lifted by US$2.19 or 2.0% to US$111.76 a barrel.

Base metal prices were mostly lower on Tuesday after new data showed that US consumer confidence sunk to a 16-month low on inflation and recession fears. Copper lost 0.7% with lead down 2.1%, but nickel rose by 1.2% and zinc was up 0.2%.

The gold futures price fell by US$3.60 or 0.2% to US$1,821.20 an ounce. Spot gold was trading near US$1,819 an ounce at the US close. The iron ore futures price rose by US60 cents or 0.5% to US$130.28 a tonne after China eased its strict virus quarantine rules. Ahead: In Australia, retail trade data is issued. In the US, economic (GDP) growth data is scheduled. US Federal Reserve Chair Jerome Powell participates in a economic policy panel discussion.

Originally published by CommSec