The Dallas Fed manufacturing jumped to +15.3 from -0.3 in January - a 11-month high. US personal spending was flat in December following a 0.1pct increase in both October and November. Personal incomes grew by 0.5pct in December - matching the largest gain in nine months. Over the year incomes rose by 3.8pct. Core PCE inflation (which strips out energy and fuel costs) rose by 0.2pct in December to be 1.8pct higher than a year ago.

European shares fell to a two-week low on Monday as talks on a restructure of Greek private debt continued to drag on. Cyclical stocks bore the brunt of the weakness. The STOXX Europe 600 banking index fell 3.1pct. French banks lost significant ground after French President Sarkozy restated a plan for a financial transaction tax with an August target date. On a more positive note, Italy successfully auctioned €7.5 billion in 5 and 10 year notes with yields substantially below levels in late 2011. The FTSEurofirst index fell by 1pct, with the UK FTSE down 1.1pct while the German Dax fell by 1pct.

US sharemarkets eased on Monday as the ongoing debt concerns in the Eurozone hurt sentiment. The financial sector was the biggest drag with the S&P 500 Financial index down 1pct. Apple shares (up 1.2pct) helped cap losses after reports that Apple could add China mobile and China Telecom as distributors over the next year. At the close of trade, the Dow Jones was lower by 7 points or 0.1pct and the S&P 500 fell 0.3pct while the Nasdaq lost 5pts or 0.2pct.

US treasuries rose (yields lower) as concerns about Greece´s debt restructuring saw investors remain nervous. US 2yr yields fell 1pt to 0.215pct and US 10yr yields fell by 5pts to 1.849pct - the lowest levels in six weeks.

The US dollar rallied against the Euro in overnight trade as the lack of a breakthrough in Greece´s debt talks pushed yield spreads between German Bunds and euro-zone peripheral nations wider. The Euro fell from highs near US$1.3180 to US$1.3075, heading into the US close near US$1.3125. The Aussie dollar hit early lows near US105.25c before rising to US106.05c, and was near US$105.90c in late US trade. And the Japanese yen lifted from 76.75 yen per US dollar to JPY76.20 and was near JPY76.30 in late US trade.

World crude oil prices fell on Monday in a volatile trading session a day after Iran postponed a parliamentary debate to halt crude sales to the European Union. Nymex oil fell by US78c or 0.8pct to US$98.78 a barrel and London Brent crude lost US71c to US$110.75 a barrel.

Base metal prices were lower on the London Metals Exchange on Monday. Copper lost 1.2pct as Chinese buying did not materialise on the first session after the week long holiday. And the gold price eased on Monday, pressured by the stronger US dollar. The Comex February gold price fell by US$1 or 0.1pct to US$1,734.40 an ounce.

Ahead: In Australia, private sector credit, RP data house price index and the NAB business survey are released. In the US, the S&P CaseShiller home price index is released.