US consumer spending rose by 0.7pct in February after an upwardly revised 0.3pct gain in January. US personal incomes rose 0.3pct in February. The Fed´s preferred measure of consumer inflation - the core PCE excluding food & energy - rose by 0.2pct in February after a similar rise in the prior month.

The US pending home sales index unexpectedly rose by 2.1pct to 90.8 in February. Pending home sales tends to lead existing home sales by around two months.

European shares were mixed on Monday. Broker upgrades for Nokia (up 3.6pct) and Alcatel-Lucent (up 7.9pct) drove technology stocks higher. Banking stocks received a boost after a Reuters report suggested a possible liquidity deal by the ECB for troubled euro zone banks. The FTSEurofirst index edged up 0.1pct, the German Dax fell by 0.1pct and the UK FTSE rose 0.1pct.

US sharemarkets eased into the close on Monday after initial gains. Telecom stock received a boost after broker upgrades for AT&T and Verizon. The S&P telecom index was up 1.4pct. Volumes on the NYSE and Nasdaq were the lowest this year. The Dow Jones index fell by 23pts or 0.2pct with the S&P 500 lower by 0.3pct and the Nasdaq weaker by 12 pts or 0.5pct.

US treasuries eased (yields higher) on Monday, following the first treasury auction in three weeks. The $35 billion sale of 2yr notes found decent demand with a bid-to-cover ratio of 3.16. US 2yr yields rose 3pts to 0.77pct and US 10yr yields rose 2pts to 3.46pct.

The greenback eased against the Euro on Monday following comments from ECB President Trichet, that inflation rates are above the central bank´s price stability target. The Euro rose from lows near US$1.4030 to US$1.4115 and closed US trade near US$1.4090. The Aussie dollar rose from early lows near US102.55c to US103.06c, before giving back gains, ending US trade near US102.50c. And the Japanese yen held in tight range between 81.85 yen per US dollar to JPY81.60, ending US trade near JPY81.70.

US crude oil prices fell in a volatile trading session on Monday, after Libyan rebels regained control of key oil ports and redoubled efforts to resume oil exports. A US treasury official said the rebels could sell Libyan crude free from sanctions, while Qatar agreed to help facilitate oil transactions. The Nymex crude oil contract fell by US$1.42 or 1.3pct to US$103.98 a barrel. And the London Brent crude fell by US79c to US$114.80 a barrel.

Base metal prices were weaker on the London Metal Exchange. Concerns about sustained softness in Chinese buying and rising inventory levels drove the weakness in prices. And the gold price also fell with the Comex gold futures price closing down US$6.30 or 0.4pct to US$1419.90.

Ahead: In Australia, demographic data is released. In the US, S&P Case-Shiller home price index is released.