People try out laptops displayed at an electronics retail store in Tokyo November, 16, 2014. Japan's economy unexpectedly shrank an annualised 1.6 percent in July-September after a severe contraction in the previous quarter, likely solidifying the view th
People try out laptops displayed at an electronics retail store in Tokyo November, 16, 2014. Japan's economy unexpectedly shrank an annualised 1.6 percent in July-September after a severe contraction in the previous quarter, likely solidifying the view that premier Shinzo Abe will delay a second sales tax hike next year. Picture taken November 16, 2014. Reuters/Yuya Shino
People try out laptops displayed at an electronics retail store in Tokyo November, 16, 2014. Japan's economy unexpectedly shrank an annualised 1.6 percent in July-September after a severe contraction in the previous quarter, likely solidifying the view that premier Shinzo Abe will delay a second sales tax hike next year. Picture taken November 16, 2014. REUTERS/Yuya Shino (JAPAN - Tags: BUSINESS POLITICS SCIENCE TECHNOLOGY)

* In the US, producer prices rose by 0.2% in October to be up 1.5% over the year. Core prices (ex food & energy) rose by 0.4% to be up 1.8% on a year ago. The NAHB housing market index improved from 54 to 58 in November.

* European shares rose on Tuesday, boosted by the lift in German sentiment. The ZEW survey which showed German analyst and investor sentiment rose from -3.6 to +11.5 in November - marking the first increase in almost a year. The automotive sector (up 1.5%) was the best performing sector after data showed new car sales in Europe rose 6.2% in October compared with a year ago. The FTSEurofirst 300 index rose by 0.6% with the UK FTSE also up by 0.6% while the German Dax gained 1.6%. In London trade shares in BHP Billiton fell 0.5% and Rio Tinto lost 1.8%.

* US sharemarkets rallied on Tuesday lifting the S&P 500 to a record high. Merger and acquisition activity was in focus with the healthcare sector benefiting for the second day from news that Allergan agreed to be bought by Actavis in a deal worth up to US$65.5 billion. The S&P Healthcare index rose 1.4% on Tuesday, while the Nasdaq biotech sector rose 2.2%. At the close of trade the Dow Jones was up by 40 points or 0.2%. The S&P 500 index was up by 0.5% and the Nasdaq was up by 31 points or 0.7%.

* US treasuries rose on Tuesday (yields lower) as investors digested the business inflation figures. Traders remained cautious of setting positions ahead of the release of minutes from the last Federal Reserve meeting. US 2 year yields fell by 1 point to 0.508% while US 10 year yields fell by 2 points to 2.322%.

* The US dollar fell against major currencies on Tuesday. The Euro rose from lows near US$1.2465 to highs near US$1.2545, and was around US$1.2535 in late US trade. The Aussie dollar fell from highs near US87.45c to around US86.85c, before rebounding to US87.25c in late US trade. The Japanese yen traded between 116.90 yen per US dollar to JPY116.40 and was at JPY116.90 in late US trade.

* World oil prices fell again on Tuesday as traders focused on data showing that OPEC producer Saudi Arabia raised crude shipments in September. Brent crude fell by US84c or 1.1% to US$78.47 a barrel while the US Nymex crude price fell by US$1.03 or 1.4% to US$74.61 a barrel.

* Base metal prices were weaker on the London Metal Exchange on Tuesday with aluminium, copper and lead all down 1%. Other metals lost between 0.6%-0.9%. Gold rose on Tuesday as the US dollar eased. Comex gold futures rose by US$13.60 an ounce or 1.1% to US$1,197.10 per ounce. Iron ore fell by US$3 or 4.2% to US$72.10 a tonne on Tuesday.

Ahead: In Australia, no economic data is released. In the US, housing starts, building permits and the FOMC minutes are issued.

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