US personal income rose by 0.3pct in May while spending was unchanged. Both readings were slightly weaker than market expectations.

The French Government has offered a solution to banks to roll over holdings of Greek debt for 30 years. The Government had reached an agreement with French banks over the proposal and French President Nicolas Sarkozy ´´hoped that other European countries would do the same.´´

European shares were again mixed on Monday ahead of a vote by Greece later in the week on an austerity package. Commerzbank was a major loser in the banking sector, down 5pct. The FTSEurofirst index rose by 0.1pct but while the German Dax fell 0.2pct, the UK FTSE rose by 0.4pct.

US sharemarkets rebounded on Monday, clawing back most of the losses recorded on Friday. Banks led the gains with the S&P financial index up 1.1pct. And shares in Microsoft rose 3.7pct. The Dow Jones rose by 109pts or 0.9pct with the S&P 500 up 0.9pct and the Nasdaq lifted 35pts or 1.3pct. Shares in Nike rose 4pct in after-hours trade after posting better-than-expected earnings.

US treasuries fell on Monday (yields higher) as sharemarkets rebounded and investors unwound safe-haven purchases. Also weighing on prices was poor demand for a US$35 billion issue of 2-year notes. There are two other debt auctions scheduled this week. US 2yr yields rose by 6pts to 0.39pct and US 10yr yields rose by 6pts to 2.927pct.

Major currencies were mixed against the US dollar in European and US trade on Monday. The Euro rose from lows near US$1.4110 to US$1.4290, before ending US trade near US$1.4275. The Aussie dollar held between US103.90c and US104.60c, ending US trade near US104.35c. And the Japanese yen eased modestly from 80.60 yen per US dollar to JPY80.95, before ending US trade around JPY80.85.

Benchmark crude oil prices were again mixed on Monday. Brent crude rose in response to a firmer Euro and hopes that Greece will approve austerity measures. But Nymex eased modestly in response to a firmer greenback against other currencies and soft US economic data. Nymex crude oil fell by US55c to US$90.61 a barrel but London Brent crude rose by US87c to US$105.99 a barrel.

Base metal prices were again mixed on the London Metal Exchange on Monday but the changes were modest in both directions. Aluminium, tin and nickel rose up to 0.4pct while other metals fell up to 0.9pct. And the gold price eased in response to end-month and end-quarter profit-taking with Comex gold lower by US$4.50 an ounce or 0.3pct to a five-week low of US$1,496.40.

Ahead: In Australia, Reserve Bank Assistant Governor Guy Debelle delivers a speech. In the US, consumer confidence, the Case-Shiller home price series and Richmond Fed index are released.