The Chicago Midwest manufacturing index rose from 80.3 to 80.9 in October. The Dallas Fed manufacturing index lifted from 2.6 to 16.2 in November. And the National Association of Realtors believes that commercial vacancy rates are close to peaking and will ease over 2011.

European shares slumped to eight week lows on Monday on fears that the continent´s debt crisis could spread. Banks led the declines with shares in Deutsche Bank down 3pct. But shares in Bank of Ireland soared by 15.5pct. Mining shares were hard hit with shares in BHP Billiton losing 2.1pct in London trade and Rio Tinto was down by 3.3pct. The FTSEurofirst index fell by 1.6pct with the UK FTSE down 2.1pct and German Dax lower by 2.2pct.

US sharemarkets fell on Monday in sympathy with European markets but substantially pared losses late in the session. Markets were supported by positive economic data and reports of better-than-expected ´´Black Friday´´ retail sales. A survey by the National Retailer Federation estimated that the number of shoppers was up 8.7pct on a year ago. At the close, the Dow Jones was lower by 39pts or 0.4pct, after earlier being down 163pts. The S&P 500 was down 0.1pct and the Nasdaq was lower by 9pts or 0.4pct.

US treasuries rose on Monday (yields lower) in response to safe-haven flows and bond purchases by the Federal Reserve. The Fed bought $2.17 billion of Treasuries with maturities between 2021-2027. US 2yr yields fell 2pts to 0.51ct, and US 10yr yields fell 4pts to 2.83pct.

The US dollar rose against major currencies for a second day in European and US trade on Monday. The Euro eased from highs of US$1.3300 to US$1.3065, ending US trade near US$1.3120. The Aussie dollar fell from highs of US97.00c to US95.65c, before ending US trade near US96.30c. And the Japanese yen eased from levels near 83.85 yen per US dollar to JPY84.40, ending US trade near JPY84.25.

US crude oil prices rose on Monday with investors concerned that a cold snap across Europe would place demands on global heating oil supplies. Working to put a cap on prices was a firmer greenback and the European debt concerns. The Nymex crude oil contract rose by US$1.97 or 2.4pct to US$85.73.

Base metal prices fell on the London Metal Exchange on Monday, the exception being aluminium, up 0.1pct. Lead lost 4.1pct and other metals fell between 0.2-1.0pct. But the gold price rose, lifted by safe-haven flows and higher oil prices. The Comex gold futures price rose by US$3.60 an ounce to US$1,366.00.

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Ahead: In Australia, balance of payments and government finance data are released together with private sector credit, home prices and building approvals. Reserve Bank Assistant Governor Guy Debelle delivers a speech. In the US, data on home prices is released together with consumer confidence.