The OECD leading indicator for 29 countries lifted from 102.5 to 102.6 in October with activity accelerating in the US, China and France but easing slightly in Germany and Japan. The outlook has softened for Italy, India, Canada and Brazil.

Ratings agency Moody´s has warned that the proposed extension of Bush-era tax cuts ´´will adversely affect the (US) federal government budget deficit and debt level.´´

European shares rose for the sixth straight day on Monday - the longest winning streak in five months. Investors were encouraged by the continued strength of the Chinese economy and the decision by the central bank to hold rates steady. The FTSEurofirst index rose by 0.3pct, with the UK FTSE higher by 0.8pct while the German Dax rose by 0.3pct.

US sharemarkets were mixed on Monday. Investors were encouraged by good economic data in China and the calm response to higher inflation by the central bank but tech stocks eased. At the close, the Dow Jones was higher by 18pts or 0.2pct with the S&P 500 largely flat but the Nasdaq was lower by 12pts or 0.5pct.

US treasuries rose on Monday (yields lower) as traders looked to square positions ahead of the Federal Reserve meeting and a raft of economic data. Earlier on Monday yields lifted to six-month highs. US 2yr yields fell by 5pts to 0.60pct and US 10yr yields fell by 4pts to 3.29pct.

The US dollar slumped against major currencies in European and US trade on Monday. The absence of a rate hike in China lifted demand for growth assets while Moody´s also expressed concern about the US budget deficit. The Euro lifted from lows near US$1.3180 to US$1.3430, ending US trade near US$1.3390. The Aussie dollar lifted from lows near US98.40c to US99.80c, and was near US99.50c in late US trade. And the Japanese yen lifted from around 84.35 yen per US dollar to near JPY83.10, and was around JPY83.45 in late US trade.

US crude oil prices rose on Monday as the greenback fell. A weaker US dollar improves the purchasing power of commodity buyers in Europe and Asia. The Nymex crude oil contract rose by US82c or 0.9pct to US$88.61 a barrel.

Base metal prices rose on the London Metal Exchange on Monday in response to a weaker greenback. Investors were also relieved that China´s central bank didn´t lift interest rates to slow its economy. Copper rose 2.9pct to record highs with nickel up 2.3pct and other metals rose between 0.8-2.0pct. The gold price also rose on Monday in line with oil in response to a weaker greenback. The Comex gold futures price rose by US$13.10 an ounce to US$1,398.00.

Ahead: In Australia, the NAB business survey is released together with data on dwelling starts. In the US, data on producer prices and retail sales are released. The Federal Reserve meets to decide interest rate settings.

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