US existing home sales rose by 10pct in September to an annual rate of 4.53million, well above forecasts centred on a rise of 4pct to 4.30 million. The stock of unsold homes fell from 12 months supply to 10.7 months. The median price was 3.3pct below year ago levels.

The governor of the Bank of Greece said on Monday that the worst is over for Greek banks ´´but the road ahead will be long.´´

European shares rose on Monday. Mining company shares lifted in response to higher metal prices. And shares in luxury goods group Hermes rose by 15.1pct after LVMH bought a stake in the company. In London trade shares of BHP Billiton rose by 2.4pct with Rio Tinto up 2.5pct. The FTSEurofirst index rose by 0.3pct, with the UK FTSE up by 0.2pct while the German Dax gained 0.5pct.

US sharemarkets rose on Monday with investors encouraged by stronger-than-expected data on homes sales. Resource companies also rose in response to higher metal and energy prices. Shares in Office Depot gained 4.5pct after reporting better-than-expected earnings. The Dow Jones rose by almost 32pts or 0.3pct with the S&P 500 up 0.2pct while the Nasdaq lifted by almost 11.5pts or 0.5pct.

US treasuries were again little changed on Monday. Traders reported strong demand at the re-opening of US$10 billion of five-year Treasury Inflation-Protected Securities. US 2yr yields were steady at 0.363pct, and US 10yr yields were steady at 2.56pct.

After rising through Asian trade, major currencies gave up some of the gains against the greenback in European and US trade. The Euro eased from US$1.4080 to US$1.3950, ending US trade near US$1.3970. The Aussie dollar eased from highs near US99.75c to US99.00c, before ending US trade near the day´s lows. And the Japanese yen strengthened from 81.00 yen per US dollar to JPY80.40, ending US trade near JPY80.80.

US crude oil prices rose on Monday in response to a weaker dollar, although giving up some gains as the greenback recovered over the US session. A weaker dollar improves the purchasing power for commodity buyers in Europe and Asia. The Nymex crude oil contract rose by US83c or 1.0pct to US$82.52 a barrel after hitting US$83.28 at one point.

Base metal prices rose on the London Metal Exchange on Monday in response to a weaker greenback and increased confidence by investors. Aluminium rose 0.3pct but other metals were up between 1.5-2.3pct. And the gold price was also stronger with the Comex gold futures price up by US$14.90 an ounce to US$1,340.00. Traders report solid physical demand by buyers in India.

Ahead: In Australia, a number of companies hold annual general meetings including Commonwealth Bank, Perpetual, RP Data, Foster´s and Billabong. In the US consumer confidence and home price data are released.

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