The Sentix index of investor sentiment in the 16-nation Euro region declined to +9.7 from +14 in November. A gauge of current business conditions dropped to +12.75 from +21.75, and an indicator of expectations rose to +6.75 from +6.50.

The US Conference Board employment trends index lifted from 98.1 to 99.0 in November.

In a television interview, US Federal Reserve chairman Ben Bernanke has raised the prospect of further purchases of government bonds: ´´Oh, it´s certainly possible. It depends on the efficacy of the program. It depends, on inflation. And finally it depends on how the economy looks,´´ he said.

European shares edged modestly higher in quiet trade marked by an absence of new economic data or corporate news. The FTSEurofirst index rose by 0.1pct, with the UK FTSE higher by 0.4pct while the German Dax rose 0.1pct.

US sharemarkets were flat on Monday given the absence of major new economic information. Hedge fund manager William Ackman is offering to assist Borders Group with a planned US$964 million bid to buy Barnes & Noble. Shares in Barnes & Noble rose by 13pct. With an hour of trade to go, the Dow Jones was up by 2pts or less than 0.1pct with the S&P 500 flat and the Nasdaq was up 4pts or 0.2pct.

US treasuries rose on Monday (yields lower) after Fed chief Ben Bernanke raised the prospect of further purchases of government bonds. US 2yr yields fell by 5pts to 0.429pct and US 10yr yields fell by 6pts to 2.944pct.

Major currencies eased against the US dollar In European trade before clawing back losses in the US session. The Euro held between US$1.3245 and US$1.3380, heading into the US close near US$1.3320. The Aussie dollar hovered between US98.50c to US99.15c, and was ending US trade near US99.00c. And the Japanese yen lifted from levels near 83.00 yen per US dollar to JPY82.55, ending US trade near JPY82.60.

US crude oil prices were little changed on Monday. The US dollar was modestly firmer against major currencies, trimming the purchasing power for buyers in Europe and Asia. But this was balanced against the supply concerns emanating from the cold snap in Europe and fears of colder weather in the US Northeast. The Nymex crude oil contract rose by US19c to US$89.33 a barrel.

Base metal prices were generally higher on the London Metal Exchange on Monday. Metals rose between 0.1pct and 0.6pct but aluminium lost 0.7pct. And the gold price also rose to fresh record highs on investor demand. The Comex gold futures price rose by US$11.70 an ounce to US$1,417.90.

Ahead: In Australia, the Reserve Bank Board meets to decide interest rate settings. In the US weekly data on chain store sales is released.

Newsletter: Subscribe to receive this report daily