The euro-zone private sector slowed in April according to latest data. The ´´flash´´ composite purchasing managers index fell from 49.1 to 47.4 in April with services down from 49.2 to 47.9 and manufacturing down from 47.7 to 46.0.

European shares slumped to three-month lows on Monday. There was uncertainty about who will eventually become French president after a tight result in the first round election. In the Netherlands the prime minister stood down after budget talks collapsed. And economic data disappointed. The benchmark FTSEurofirst 300 index fell by 2.3pct with the German Dax down by 3.4pct and UK FTSE lost 1.9pct.

US sharemarkets fell on Monday, dragged down by weakness in Europe. Shares in Wal-Mart slumped by 4.7pct on reports that it stymied a bribery probe. And shares in Kellogg fell by 6.1pct after the company cut earnings guidance. The Dow Jones fell by 102pts or 0.8pct with the S&P 500 down by 0.8pct while the Nasdaq lost 30pts or 1.0pct.

US treasuries rose on Monday (yields lower) as investors embraced safe-haven government bonds in response to economic and political problems in Europe. But investors restrained buying ahead of Wednesday´s Federal Reserve meeting. US 2yr yields fell 1pt to 0.26pct and US 10yr yields fell by 3pts to 1.94pct.

The Euro and commodity currencies fell against the greenback in European trade before clawing back some losses in US trade. The Euro fell from highs around US$1.3190 to lows near US$1.3100 and ended US trade at US$1.3155. The Aussie dollar fell from highs around US103.40c to US102.70c and ended US trade near US103.15c. And the Japanese yen lifted from 81.30 yen per US dollar to JPY80.96 and ended US trade near JPY81.15.

Benchmark crude oil prices fell on Monday in response to weak European economic data and falls on European and US equity markets. US Nymex crude fell by US77c or 0.7pct to US$103.11 a barrel. And London Brent crude fell by US5c to US$118.71 a barrel. Brent was supported by concerns about supply disruptions because of production problems in the North Sea.

Base metal prices fell on the London Metals Exchange on Monday in response to weak European economic data and falling equity markets. Metals fell between 1.2-3.0pct with lead faring the worst. And the gold price fell in line with other commodities and equities markets. The June Comex gold futures price fell by US$10.20 or 0.6pct to US$1,632.60 an ounce. Physical demand for gold remains weak ahead of the Indian Akshaya Tritiya festival - a major gold buying event.

Ahead: In Australia, the consumer price index is released. Wesfarmers releases quarterly sales figures. In the US data on consumer confidence, home sales and home prices is scheduled together with the Richmond Fed index.