US NAHB housing market index fell 1pt to 13 in August - marking the third straight month of falls and a 17-month low. A reading below 50 indicates that more builders view conditions as poor rather than good. The New York Fed Empire manufacturing index rose from 5.08 to 7.1 in July. the new orders sub-index fell below zero for the first time since July 2009. On a positive note the employment index recorded a modest rise.

US TICS data showed overseas investors sold a net total of $6.7billion of US securities including short term treasury bills in June - marking the first net outflow in five months. However purchases of longer-term US treasuries rose from $35.3 billion to $44.4 billion.

European shares were mostly unchanged on Monday. Trading volumes were light and the weakness in the banking sector was offset by gains in miners and the retailers. The FTSEurofirst index remained flat with the UK FTSE up by almost 1pt while the German Dax also closed unchanged.

US sharemarkets were largely flat on Monday. Volumes were weak as investors remained on the sidelines, though technology stocks received a small boost. At the end of trade the Dow Jones was lower by 1pt with the S&P 500 flat and the Nasdaq higher 8pts or 0.4pct.

US treasuries rallied on Monday (yields lower) as investors rushed to lock in yields on concerns about a stalling economy. US 2yr yields fell 4pts to 0.49pct and US 10yr yields lost 11pts to 2.56pct.

Major currencies strengthened against the US dollar in Monday trade. The Euro rose from lows near US$1.2780 to around US$1.2860, ending US trade near US$1.2820. The Aussie dollar rallied from lows near US89.00c to US89.95c, ending US trade near US89.70c. And the Japanese yen traded between 85.95 yen per US dollar and JPY85.20, ending US trade near JPY85.30.

US crude oil prices fell for a fifth straight session. Japan´s lacklustre growth data and concerns about a slowing global economy were offset by the weakness in the US dollar, ensuring that the fall in the oil price was minor. The Nymex crude oil contract fell by US15c or 0.2pct to US$75.24. US London Brent crude fell by US26c to US$74.85 a barrel.

Base metal prices were higher on the London Metal Exchange on Monday. Falling inventories and the weak US dollar supported the bid for commodities. Lead rose 1.8pct while other metals gained between 0.6-1.3pct. And the Comex gold price closed higher by US$9.60 an ounce to US$1,226.20.

Ahead: In Australia, Reserve Bank board minutes is released. The Reserve Bank Governor delivers a speech at 8pm Sydney time. In the US housing starts, building permits, industrial production, and producer prices are all expected to be released.