The OECD leading economic indicator rose from 102.8 to 103.1 in January with gauges for most industrialised economies strengthening in the month except China, India and Brazil.

European shares fell to three-month lows on Monday on continued concerns about the broader economic impact of the earthquake in Japan. The FTSEurofirst index lost 1.2pct, the German Dax fell by 1.7pct and the UK FTSE eased by 0.9pct.

[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]

US sharemarkets fell on Monday as investors switched affection from equities to safe-haven assets like government bonds and gold. Shares in General Electric slid 2.7pct. GE has a number of combined nuclear ventures with Hitachi and supplied reactors to the troubled Fukushima-Daiichi nuclear plant. The Dow Jones index fell by 51pts or 0.4pct with the S&P 500 lower by 0.6pct and the Nasdaq lost 15pts or 0.5pct.

US treasuries were flat on Monday. While investors embraced safe-haven assets in response to the Japanese earthquake, this was balanced against concerns about whether Japan would continue buying US treasuries. Japan is the second largest holder of US treasuries behind China. US 2yr yields were steady at 0.65pct and US 10yr yields were steady at 3.40pct.

The greenback fell against the Euro after the EuroGroup chairman Junker said there has been a significant increase in inflation. The Euro lifted from lows near US$1.3905 to highs near US$1.4000 and headed into the US close near US$1.3995. The Aussie dollar rose from lows near US100.45c in early US trade to US101.05c, and headed into the US close near the day´s highs. The Japanese yen lifted from 82.20 yen per US dollar to around JPY81.55, ending US trade near JPY81.70.

US crude oil prices recorded a modest increase on Monday as the continuing unrest in the Middle East pulled prices up from their lows. Investors spent most of the session focussing on global oil demand in light of Japan´s earthquake. The Nymex crude oil contract rose by US3c to US$101.19 a barrel. But the London Brent crude price fell by US17c to US$113.67 a barrel.

Base metal prices were decidedly mixed on the London Metal Exchange on Monday. Most metals rose, especially lead, up 3.9pct, and zinc, up 2.2pct. But copper was flat and nickel fell 0.5pct. The gold price rose on Monday as risk averse traders continued to buy up safe haven gold. The Comex gold futures price rose by US$3.10 an ounce to US$1,424.90.

Ahead: In Australia, lending finance and car sales data are due together with minutes of the March 1 Reserve Bank Board meeting. Reserve Bank Assistant Governor Guy Debelle delivers a speech. In the US, the Federal Reserve meets to decide interest rate settings.

More from IBT Markets:
Newsletter: To receive Global Markets update, sign up here