US Federal Reserve chairman, Ben Bernanke, has indicated that improving small business access to finance is a key factor needed to support economic recovery. Meanwhile Richmond Fed president Jeffrey Lacker has criticised financial markets for over-reacting ´´to a couple of reports that have been a little bit below what people expected.´´.

European shares rose for a fifth day on Monday with shares of BP higher on reports the oil giant may sell assets. Shares in BP rose by 9.4pct. The FTSEurofirst index rose by 0.4pct with the UK FTSE up 0.7pct and the German Dax edged 0.2pct higher.

US sharemarkets limped through Monday´s session with trade thinned ahead of the start of the US profit-reporting season. The Dow Jones rose by 18 points or 0.2pct with the S&P 500 up 0.1pct, and the Nasdaq gained almost 2 points or 0.1pct. After the bell Alcoa kicked off the earnings season, reporting second quarter earnings of 13 cents per share, just ahead of the consensus forecast of 11 cents.

US treasuries were little changed on Monday in response to a stable sharemarket and subdued reaction to an auction of $35 billion of three-year Treasury notes. US 2yr yields rose 1 point to 0.65pct with US 10yr yields up 1 point to 3.07pct.

Major currencies were largely directionless against the greenback over European and US sessions on Monday. The Euro fell from around US$1.2595 to US$1.2550 in European trade before rising over the US session to end trade back near US$1.2595. The Aussie dollar lifted from lows near US87.00c to US87.60c, ending the US session near US87.55c. And the Japanese yen lifted from 88.95 yen per US dollar to JPY88.40, ending US trade near JPY88.60.

US crude oil prices fell on Monday as investors elected to take profits across the commodity complex ahead of the start of the US profit-reporting season. But investors were encouraged by news of record Chinese crude imports in the latest month. The Nymex crude oil contract fell by US$1.14 or 1.5pct to US$74.95. London Brent crude rose by US$1.05 to US$74.37 a barrel.

Base metal prices on the London Metal Exchange fell for only the second time in seven days on Monday. The base metal index fell by 1.9pct with metal prices down between 1.6-3.4pct. A firmer greenback weighed on prices while a third monthly decline in Chinese copper imports provided an excuse for investors to take profits. The price of gold also fell in line with a broad pull-back from the commodity complex. The Comex gold price fell by US$11.10 an ounce to US$1,198.70 with a range of US$1,196.10 to $1,213.50.

Ahead: In Australia, the NAB business survey and lending finance data are released. In the US, trade data and the monthly treasury budget figures are released.

Provided by Comsec.com.au