US home prices edged higher for the second month in a row in March, suggesting prices are stabilizing as the housing recovery gains momentum.

But consumer confidence cooled in May to its lowest level in four months, separate data showed on Tuesday, as Americans turned gloomy about the job market and economic outlook.

The closely watched S&P/Case Shiller composite home price index of 20 metropolitan areas gained 0.1% in March on a seasonally adjusted basis, though it fell shy of economists’ forecasts for a gain of 0.2%.

The housing market has been a thorn in the side of the broader economic recovery, but the sector has been gaining traction with new construction and sales rising in April.

“In my mind there is no question that housing has bottomed, in terms of home sales, home construction and home prices, but the recovery is still going to be very modest or very sluggish,” said Mark Vitner, senior economist at Wells Fargo Securities in Charlotte, North Carolina.

Prices in the 20 cities fell 2.6% from a year ago, an improvement from the 3.5% yearly decline seen last month. Seven of the 20 cities saw price increases from a year ago, including hard-hit Detroit and Phoenix.

Still, it was too early to say housing prices have turned, despite the improvement in some regions, David Blitzer, chairman of the index committee at S&P Indexes, said in a statement.

“This is what we need for a sustained recovery; monthly increases coupled with improving annual rates of change,” said Blitzer.

“Once we see this on a broader level we will be able to say the market has turned around.”

The major house price indexes ended the first quarter at new post-financial crisis lows, the report said. For the first quarter, prices were down 2%, compared to a 3.9% decline in the last three months of 2011.

Financial markets saw little initial reaction to the data. Wall Street was up more than 1% in mid-morning trading on hopes China may unleash more spending measures and as Greek election polls pointed to support for pro-bailout parties.

A report from industry group the Conference Board showed consumer confidence fell to its lowest level since the start of the year, making for the third month of declines.

The index of consumer attitudes fell to 64.9 from a downwardly revised 68.7 the month before, short of expectations for a gain to 70.0.

“I would expect confidence will remain under pressure as long as negative headlines from Europe persist, which should weigh on confidence in the coming months,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.

OPEC oil output in May has hit its highest since 2008 as Saudi Arabia kept rates high despite a drop in prices and Iranian shipments did not fall much further ahead of an EU embargo, a Reuters survey found on Tuesday.

The increase in supplies by Saudi Arabia has helped to cushion the impact of Western measures against Iran’s nuclear programme. Still, with Iraq unable to sustain an increase in exports and Libyan output falling, analysts say further rises in OPEC supply will be harder to achieve.

“Given sustainability concerns around current levels of Libyan output and infrastructure constraints in Iraq, it is unlikely these two countries will be able to raise production much further in the next couple of months,” said Harry Tchilinguirian of BNP Paribas.

In May, supply from the 12-member Organization of the Petroleum Exporting Countries has averaged 31.80 million barrels per day (bpd), up from 31.75 million bpd in April, the survey of sources at oil companies, OPEC officials and analysts found.

OPEC’s total is the highest since September 2008, shortly before it agreed to a series of supply curbs to combat recession and collapsing demand, based on Reuters surveys. Supply is running almost 2 million bpd above OPEC’s 30 million bpd target.

The group meets to review output policy on June 14 in Vienna and it remains to be seen if it can contain the political tensions caused by sanctions against Iran. Iran is unhappy about the high level of OPEC and Saudi production, delegates say.

“We agreed to produce around 30 million bpd at the last meeting. Producing more than that is against our own decision,” said one delegate, who declined to be identified.

Oil prices surged in March to USD 128 a barrel, the highest since 2008, because of concern about disruption to global supply from the U.S. and European sanctions aimed at hurting Iran’s crude export revenues.

With tension easing between Iran and the West, OPEC output climbing and concerns increasing about the euro zone debt crisis, prices have fallen back. Brent crude was trading just above USD 107 on Tuesday.

Saudi Increase

In May, the biggest increase in OPEC supply has come from Saudi Arabia, which has made clear it would like to see Brent at around USD 100 a barrel.

The kingdom has pumped an extra 100,000 bpd this month, the survey found, taking output to 10.10 million bpd, the highest in decades. There was no sign of its Gulf allies Kuwait and the United Arab Emirates throttling back supplies.

Extra supply is also coming from Nigeria, rising due to a new Total field, Usan. Even so, a production cut by Royal Dutch Shell due to oil theft limited the increase.

OPEC output also rose because, for now at least, supply from Iran did not decline much further.

Iran’s supply slipped by 20,000 bpd to 3.13 million bpd in May, according to the survey. That would be the lowest output in Iran since it produced 3.088 million bpd in 1990, according to figures from the U.S. Energy Information Administration.

In March and April, Iran’s exports posted sizeable declines as some customers stopped or scaled back purchases ahead of the EU embargo starting on July 1. Core customers are continuing to buy, industry sources say.

Greece left the euro, living standards would plummet, incomes would be slashed by more than half, and inflation and unemployment would skyrocket, the National Bank of Greece warned on Tuesday.

In a report released ahead of an election on June 17 that may determine whether the country stays in the single currency, the country’s biggest bank said the risk of Athens exiting the euro was no longer just a theoretical possibility, warning that the fallout from such a move would be dramatic.

“An exit from the euro would lead to a significant decline in the living standards of Greek citizens,” the NBG wrote ahead of a vote which parties opposed to austerity measures that have kept Greece in the euro so far have a chance of winning.

The bank said per capita income would collapse by at least 55%, the new national currency would depreciate by 65% against the euro and a recession, now in its fifth year, would deepen by 22%.

Painting a dire picture of post-euro Greece, it added that unemployment would jump to 34% of the work force from around 22% now and that inflation would rise to 30% from its current level of 2%.

The NBG is due to report its first quarter earnings on Wednesday and is expected to announce a loss. Greek banks, including NBG, have hemorrhaged deposits since the crisis began and are perceived to be in favour of retaining the euro because the alternative might trigger a run on their reserves.

The NBG said it wanted to contribute to dialogue about Greece’s future with respect to the euro.

Greece had to call a repeat election for June 17 after an inconclusive vote on May 6 left the parliament divided between parties that support and oppose the austerity steps that were a precondition of a second 130-billion-euro bailout agreed with the European Union and International Monetary Fund in March.

Tax rises and spending cuts insisted upon by the EU and IMF in order to save the country from default have caused a wave of corporate closures and bankruptcies, sparking angry protests that have often turned violent. More than half of Greeks aged 15-24 are unemployed, according to the latest figures.

While most Greeks want to keep the euro, about two thirds are against the deep salary, pension and job cuts that come with continued membership of the single currency, according to the latest opinion polls.

Greece’s conservatives have regained a tentative opinion poll lead that suggests they may be able to form a pro-bailout government committed to keeping the country in the euro. But the vote is still deemed too close to call.

EU leaders have warned Greece of the consequences of renouncing the bailout, saying they will pull the plug on funding, leading to rapid bankruptcy and an ignominious exit from the single currency.

Athens has agreed additional spending cuts of 5.5% of GDP, worth about 11 billion euros in 2013-2014, and has told its lenders it will raise another 3 billion euros from better tax collection methods in order to continue receiving bailout money.

Kingfisher Airlines said on Tuesday that there were no dues to be currently paid to the tax department, after television channels reported that the debt-laden carrier’s bank accounts have been frozen over unpaid tax dues.

Kingfisher, owned by liquor baron Vijay Mallya, has been struggling to repay USD 1.3 billion of loans and has slashed the number of its daily flights, as it seeks cash to continue operations.

Kingfisher’s bank accounts were frozen earlier this year by tax authorities for non-payment of tax deducted at source (TDS), severely hurting the company’s ability to keep flying.

The freezing order was later removed after the airline agreed to pay dues in a regular schedule.

The government today said it has cleared 25 foreign direct investment (FDI) proposals, including that of AIF III of Mauritius and Mumbai based Microqual Techno, worth Rs 2,973.40 crore.

The applications were cleared after recommendations of the Foreign Investment Promotion Board (FIPB) headed by Economic Affairs Secretary R Gopalan, the Finance Ministry said.

The FIPB, during its meeting held earlier this month, had also rejected eight proposals and deferred decision on 13 applications.

As per the ministry, application of AIF III Sub Pvt Ltd to bring in FDI worth Rs 1,000 crore has been approved. The Mauritius based firm proposes to induct foreign investment in the units of a Fund constituted as a Trust.

Microqual Techno’s application is to increase foreign equity to carry out business of wireless telecommunications. The proposal was worth Rs 522.90 crore.

The proposal of Mauritius based Mozart for infusion of foreign investment in an existing company in the pharmaceuticals sector (brownfield investments) has also been approved. The company has proposed to bring in investment worth Rs 300 crore.

Sun Pharma Research Company’s proposal for infusion of foreign equity by way of issue of partly paid up shares to carry out the development of new proprietary drugs has been cleared, the ministry said.

Other proposals which have been approved are those of Genworth Financial Mortgage Guaranty India (Rs 124 crore, Plethico Pharmaceuticals, Mumbai (Rs 500 crore) and Kintetsu World Express (India), Karnataka (Rs 267.69 crore).

Among proposals which were rejected include, Budenheim India, New Delhi; Hey House Publishers (I) and Growing Opportunity Finance (India), Chennai.

The proposals on which decisions were deferred include that of Fabindia Overseas, Paragon Asset Reconstruction, Tara Aerospace Systems and Netmagic Solutions.

The next meeting of FIPB is scheduled to be held on Friday.

India allows FDI in most of the sectors through automatic route, but approval of FIPB is required in certain sensitive sectors, like telecom.