China has lifted reserve requirements for six large commercial banks in order to slow the pace of the economy. The 50-basis point lift in reserve requirements to 17.5 percent is a temporary measure, expected to be in place for just two months.

The Greek budget deficit for the first nine months of 2010 was down 31.1 on a year ago, on track to the projected 36.9pct reduction for the full 2010 year.

The OECD leading indicator fell for the fourth month in a row, pointing to further easing of the expansion in the 32-nation group.

European shares lifted to two-week highs on Monday on hopes that the US Federal Reserve will apply more stimulus to the US economy. But mining stocks eased in response to softer commodity prices. In London trade shares in BHP Billiton fell by 0.5pct while Rio Tinto lost 1.1pct. The FTSEurofirst index rose by 0.3pct and both the UK FTSE and German Dax also rose by 0.3pct.

US sharemarkets ended flat in thin trade on Monday with the Columbus Day holiday reducing trading volumes. Shares in Microsoft were little changed after the tech giant and its partners unveiled nine new phones. The Dow Jones rose by 4pts or less than 0.1pct with the S&P 500 flat and the Nasdaq lifted by 0.4pts or less than 0.1pct.

The US treasury bond market was closed for the Columbus Day holiday. On Friday US 2yr yields fell by 1pt to 0.35pct but US 10yr yields rose 1pt to 2.395pct. And last week US 2yr yields fell by 7pts and US 10yr yields fell by 12pts.

The US dollar clawed back some losses against the Euro in European and US trade on Monday but the Aussie dollar and Japanese yen range-traded. The Euro fell from highs near US$1.3985 to US$1.3865, ending US trade near US$1.3870. The Aussie dollar traded from US98.25c to US98.75c, closing US trade near US98.35c. And the Japanese yen traded between 81.85 yen per US dollar and JPY82.15, ending near JPY82.10.

US crude oil prices eased modestly in quiet trade on Monday as the greenback stabilised against major currencies. Prices were supported by the on-going strike action at the French oil port of Fos-Lavera. The Nymex crude oil contract fell by US45c or 1.2pct to US$82.21. London Brent crude fell by US32c to US$83.71 a barrel.

Base metal prices were mixed on the London Metal Exchange on Monday with little in the way of economic news to provide direction. Lead rose 1.9pct and zinc lifted 1.8pct but other metals lost 0.3-0.9pct. But the gold price bucked the trend in commodity markets with the Comex gold futures price lifting by US$9.10 an ounce to US$1,354.40.

Ahead: In Australia, the NAB business survey is released. In the US minutes from the last Federal Reserve meeting are released.