UNITED STATES

The Australian dollar rallied on Tuesday after an upbeat assessment of the global economy by the Reserve Bank of Australia spurred traders' appetite for high-yielding currencies, and the rising risk demand also helped boost the euro. Higher risk appetite, combined with a lackluster U.S. service sector report, put the dollar under broad selling pressure amid fears of further slowdown in the U.S. economy.

Gold erased early gains on Tuesday to tumble to a six-week low as selling precipitated by a sharp rebound in equities pushed the metal through key technical support levels near $1,200 an ounce. Spot gold slipped as low as $1,189.55 an ounce and was bid at $1,192.00 an ounce at 10:09 a.m. EDT (1409 GMT), against $1,206.95 late in New York on Monday. U.S. gold futures for August delivery fell $14.80 an ounce to $1,192.90.

As the U.S. recovery limps along, some economists and political leaders are warning that states' poor fiscal conditions could threaten any progress.

President Barack Obama on Friday signed a law giving consumers already in the process of buying a home three extra months to close the deal and still get a popular tax credit from the government.

(Corrects manufacturing sector to service sector in paragraph 3)

(Corrects 2nd paragraph to service sector from 'national factory' activity)

Stocks rose broadly on Tuesday, following five days of losses, as data showed the economy's services sector grew for a sixth straight month in June and on signs of strength in Europe's banking system.

The dollar fell against the yen on Tuesday after a lower-than-expected reading on growth in the U.S. non-manufacturing sector raised concerns about the outlook for the economy.

As Rupert Murdoch, Bob Iger and other media honchos assemble in Sun Valley this week for some fly-fishing or white water rafting, spirits should be brighter than a year ago: stock prices are up by about a third, after all.

U.S. stocks rose on Tuesday, led by financial and technology shares, even though data showed U.S. non-manufacturing activity grew at a slower rate than expected in June.

The Australian dollar rallied on Tuesday after an upbeat assessment of the global economy by the Reserve Bank of Australia spurred appetite for high-yielding currencies, while rising risk demand also helped boost the euro.

U.S. stock index futures pointed to a rise of more than 1 pct at the open on Tuesday on signs of strength in Europe's banking system and ahead of a $22 billion initial stock offering by the Agricultural Bank of China, set to be the biggest-ever IPO.

British oil company BP has approached sovereign wealth funds with a view to securing a strategic investor to fend off takeover bids while it deals with its massive U.S. oil spill, a senior UAE source said on Tuesday.

Gold rose back above $1,210 an ounce in Europe on Tuesday as physical demand for the precious metal recovered after last week's price dip, and as the weaker dollar encouraged some buying. Spot gold was bid at $1,210.15 an ounce at 7:37 a.m. EDT (1137 GMT), against $1,206.95 late in New York on Monday. U.S. gold futures for August delivery firmed $2.30 an ounce to $1,210.00.

U.S. stock index futures rose sharply on Tuesday, tracking gains in global equity markets, as investors looked for bargains after Wall Street closed its worst week in two months.

Walgreen Co said sales at drugstores open at least a year rose 2 percent in June, better than the 1.1 percent rise expected by 5 analysts, according to Thomson Reuters data.

BP ruled out a share issue and talk persisted of sovereign wealth fund interest in the British oil major, boosting its shares on Tuesday even as its Gulf of Mexico oil slick spread to the Texas coast.

(Corrects in fourth paragraph to say a 122 million share holding, not a value of $122 million)

Agricultural Bank of China, the country's No.3 bank by assets, has closed the books on its dual Hong Kong and Shanghai share sale and could break all IPO records by raising more than $22 billion.

Agricultural Bank of China, the country's No.3 bank by assets, has closed the books on its dual Hong Kong and Shanghai share sale and is on track to raise around $20 billion in what could be the world's largest ever IPO.

World stocks bounced higher on Tuesday from a recent five-week low in a broad risk rally that boosted oil prices, while investors sold off the dollar and government bonds.