The share of US home loans overdue by 30 days rose to 3.46 percent of all mortgages in the second quarter, up from 3.35 percent in the first quarter, according to a report from the Mortgage Bankers Association.

European shares were mixed on Monday. Italian shares rose by 1.8pct as investors celebrated a regime change in Libya. The FTSEurofirst index rose by 0.8pct but while the German Dax was down by 0.1pct, the UK FTSE lifted by 1.1pct.

US sharemarkets limped to modest gains on Monday, finishing well off the highs of the session. Investors were quick to book any profits over the session, especially ahead of the meeting of Federal Reserve policymakers in Jackson Hole later in the week. Banks were lower with shares in Bank of America down 7.9pct. The Dow Jones rose by 37pts or 0.3pct after being up 202 points at the open of trade. The S&P 500 was up by 0.29 points or less than 0.1pct and the Nasdaq rose 3.5pts or 0.2pct.

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US long-term treasury yields lifted further away from the 60-year lows set last Thursday. Traders positioned themselves ahead of US$99 billion of bond auctions later in the week with a two-year note auction slated for Tuesday. US 2yr yields were up 1pt at 0.205pct and US 10yr yields rose y 4pts to 2.108pct.

The US dollar eased against the Euro and commodity currencies in European trade on Monday before clawing back some ground in the US session. The Euro rose from lows near US$1.4345 to near US$1.4435, ending the US session at US$1.4355. The Aussie dollar rose from lows around US103.75c to US104.70c, ending US trade near US104.15c. And the Japanese yen held in a tight range from 76.64 yen per US dollar to JPY76.82, ending US trade near JPY76.80.

Global crude oil prices were mixed on Monday. European crude prices fell on hopes of increased oil supplies from Libya but US crude rose in response to a weaker US dollar. Expiring US September Nymex crude oil rose by US$1.86 or 2.3pct to US$84.12 a barrel and October crude rose by US$2.01 to US$84.42 a barrel. But October Brent crude fell by US26c to US$108.36 a barrel.

Base metal prices were generally weaker on the London Metal Exchange on Monday, except tin which rose by 0.2pct. Other metals fell by between 0.9-1.9pctpct. But the gold price strode to a fresh record high with Comex December gold up by US$39.70 an ounce or 2.1pct to US$1,891.90. Gold traded as high as US$1,899.40 an ounce.

Ahead: In Australia, Reserve Bank Deputy Governor Ric Battellino delivers a speech. Oil Search, Mirvac, Consolidated Media, Sonic Healthcare, Foster´s and Tatts Group release profit results. In the US, new homes sales, the Richmond Fed index and weekly chain store sales data are released.