US personal spending rose by a less than expected 0.2pct in January - marking the seventh straight month of gains. US personal incomes rose 1.0pct in January and followed the 0.4pct rise in December. The Fed´s preferred measure of consumer inflation - the PCE excluding food & energy rose just 0.1pct in January after being unchanged in December.

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The Chicago PMI - a barometer of Midwest business activity - rose from 68.8 to 71.2 in February - the highest reading since July 1988. The new orders sub component rose to its highest reading in 28 years. US pending homes sales declined 2.8pct to 88.9 in January.

European shares rose for the second straight session after St. Louis Fed President James Bullard gave a bullish US outlook, easing investor fears that high oil prices would curb growth. The FTSEurofirst index lifted by 0.8pct, the German Dax was higher by 1.2pct and the UK FTSE eased by 0.1pct.

US sharemarkets were mostly higher on Monday as upbeat economic data and optimistic comments from Warren Buffet boosted investor appetite. The CBOE volatility gauge eased 2.9pct. At the close of trade, the Dow Jones index was up 95pts or 0.8pct with the S&P 500 up 0.6pct and the Nasdaq was unchanged.

US treasuries rose again on Monday (yields lower) supported by Federal Reserve purchases. The Fed purchased $6.7 billion in coupons. US 2yr yields eased 4pts to 0.69pct and US 10yr yields fell by 1pt to 3.41pct.

The US dollar fell against major currencies ahead of Federal Reserve Chairman Bernanke´s testimony to Congress. It is anticipated that Bernanke will continue to support stimulative policy. The Euro rose from lows near US$1.3750 to US$1.3855, and headed into the US close near US$1.3805. The Aussie dollar rose from US101.35c to US101.90c, and was near US101.85c in late US trade. And the Japanese yen eased from 81.60 yen per US dollar to around JPY81.95, and was near JPY81.75 in late US trade.

US crude oil prices fell on Monday after Saudi Aramco´s CEO confirmed that the extra supply needs caused by the violent unrest in Libya had been met. The Nymex crude oil contract rose by US91c or 0.9pct to US$96.97 a barrel. And the London Brent crude fell by US39c to US$111.75 a barrel.

Base metal prices rose on the London Metal Exchange on Monday, as investors focused on longer term fundamentals rather than the short-term headwinds. Metals rose between 1.2-2.8pct with Nickel doing best. And the gold price rose modestly supported by the weaker US dollar. The Comex gold futures price rose US60c to US$1,409.90 an ounce.

Ahead: In Australia, retail trade, PMI, and current account data are released. In the US, vehicle sales and ISM manufacturing data are released.

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