US personal income rose 0.4pct in December with spending up 0.7pct. The result on income was in line with expectations but spending was firmer than forecasts tipping a 0.5pct gain. The Chicago purchasing managers index lifted to a 22-year high of 68.8 in January, up from 66.8 in December.

[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]

European shares were mixed on Monday. While investors remained nervous about the unrest in Egypt, energy shares rose in response to higher oil prices and a solid earnings result from Exxon Mobil. The FTSEurofirst index was flat, with the UK FTSE down 0.3pct and the German Dax was lower by 0.4pct but the French CAC lifted 0.3pct.

US sharemarkets rose on Monday. Investors were watchful about unrest in Egypt but again returned to growth assets like equities and commodities. And shares in Exxon Mobil rose by 2.3pct after posting a 53pct lift in quarterly earnings. At the close of trade, the Dow Jones index was up 68pts or 0.6pct with the S&P 500 up 0.8pct and the Nasdaq was higher by 13pts or 0.5pct.

US treasuries fell on Monday (yields higher) as investors trimmed demand for safe-haven assets like bonds, the US dollar and gold. Solid US economic data also weighed on bond prices. US 2yr yields rose by 2pts to 0.57pct and US 10yr yields rose by 5pts to 3.38pct.

The US dollar eased against major currencies on Monday as investors began to trim safe-haven assets. The Euro rose from lows near US$1.3600 to US$1.3740 before easing to near US$1.3685 in late US trade. The Aussie dollar rose from lows around US99.15c to US99.85c, but eased in late US trade to near US99.65c. And the Japanese yen held between 81.90 yen per US dollar to around JPY82.25, and closed US trade near JPY82.05.

US and UK crude oil prices rose sharply again on Monday as continued worries that unrest in Egypt could affect oil supplies through the Suez Canal. It is estimated that almost 3 million barrels of oil pass through the Suez each day to Europe. The Nymex crude oil contract rose by US$2.85 (3.2pct) to US$92.19 a barrel. And London Brent crude rose by US$1.84 to US$101.26 a barrel.

Base metal prices again posted solid gains on the London Metal Exchange on Monday as the US dollar retreated against major currencies. Metals rose between 2.0-3.4pct with lead doing best. But the gold price eased on Monday as investors trimmed demand for safe-haven assets. The Comex gold futures price fell by US$6.90 an ounce to US$1,333.80.

Ahead: In Australia, the Reserve Bank Board meets to decide interest rate settings. The ABS house price index is released together with the NAB business survey and Performance of Manufacturing index. In the US, the ISM manufacturing index is released together with construction spending and car sales.
[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]