UK new car registrations were down 17.5pct in August from a year ago. New car registrations have now fallen for the second straight month following the end of an incentive to scrap old model vehicles.

European shares rose for the seventh straight session on Monday on renewed optimism for the global economy. Mining and energy companies recorded modest gains however volumes were thin. The FTSE100 broke through a key resistance level to close at four month highs. The FTSEurofirst index rose by 0.1pct while the UK FTSE lifted by 0.2pct and the German Dax gained 0.3pct.

US sharemarkets were closed for the labour day holiday.

US treasury markets were also closed.

The Euro eased against the greenback as investors locked in gains from the recent rally. The Euro fell from US$1.2915 to US$1.2870, ending US trade near its lows. The Aussie dollar recorded modest gains as risk appetite improved, rising from US91.55c to US91.75c, ending US trade near US91.70c. And the Japanese yen strengthened from 84.35 yen per US dollar to highs near JPY84.05, ending US trade near JPY84.20.

US crude oil prices eased in electronic trading on Monday. The end of the summer driving season and high oil inventories sapped some of the strength from recent gains. The Nymex crude oil contract fell by US65c or 0.9pct to US$73.95. London Brent crude fell by US3c to US$76.64 a barrel.

Base metal prices rose were higher on the London Metal Exchange on Monday. The recent fall in inventory levels supported demand for metals. Copper and zinc rose to four-month highs, while aluminium and lead hit one-month highs. Comex gold did not trade due to the US public holiday.

Ahead: In Australia, the Reserve Bank Board meeting takes place. In the US no economic data is expected to be released.