The US NAHB housing market index remained changed at 13 - the lowest level since March 2009. A reading above 50 indicates that more builders view sale conditions as favourable. The survey´s expectations index for the next six months fell to a 18-month low.

The National Bureau of Economic Research (NBER) announced overnight that the US recession ended in June 2009.

European shares rallied on Monday, as investors optimism improved. Energy stocks received a boost from the jump in the oil price. BP, Royal Dutch Shell and BG Group all gained over 2pct. The FTSEurofirst index rose by 1.3pct with the UK FTSE higher by 1.7pct and the German Dax gained 1.4pct.

US sharemarkets recorded strong gains on Monday following official confirmation that the US recession was over. Also supporting the bid for equties was a strong profit result from US Homebuilder Lennar. The S&P 500 closed at a four month highs after breaching the technical resistance level at 1,130. The Dow Jones rose by 146pts or 1.4pct with the S&P 500 up 1.5pct and the Nasdaq lifted by 40pts or 1.7pct.

US treasuries rallied on Monday (yields lower) as traders piled into equities ahead of the Fed policy meeting. US 2yr yields fell by 1pt to 0.46pct and US 10yr yields fell by 4pts to near 2.70pct.

The commodity currencies rallied against the greenback on Monday as traders awaited on the Fed rate decision and the possibility of further stimulus. The Euro hit early highs near US$1.3115 to US$1.3030, ending US trade near US$1.3070. The Aussie dollar rallied from lows near US94.30c to US94.90c, closing US trade near US94.70. And the Japanese yen held between 85.45 yen per US dollar and JPY85.80, ending US trade near JPY85.75.

US crude oil prices rallied on Monday for the first time in five sessions. A preliminary Reuters poll of 10 oil tracking analysts showed that US crude stocks may have fallen by 1.9 million barrels in the past week. The Nymex crude oil contract rose by US1.20 or 1.6pct to US$74.86. London Brent crude rose by US$1.10 to US$79.32 a barrel.

Base metal prices were mixed on the London Metal Exchange on Monday. Zinc gained 1.2pct and Aluminium rose 0.6pct while other metals recorded modest losses. And the Comex gold price rose by US$3.30 an ounce to $1280.80 - a third straight record high in response to a weaker US dollar.

Ahead: In Australia, the Reserve Bank Board minutes are released. In the US housing starts and the FOMC rate decision are released.