In US economic data, the employment trends index rose from 121.30 to 121.68 in September.
European shares rose on Monday with resource stocks leading the gains. Shares in Glencore rose 2 per cent on speculation of a possible merger with Rio Tinto in 2015. German industrial orders recorded the biggest fall since 2009 during August, although there were hopes that this could lead to more stimulus from the European Central Bank. The FTSEurofirst 300 index rose by 0.2 per cent while the UK FTSE rose by 0.6 per cent and the German Dax edged 0.2 per cent higher. And Australia's major miners were firmer in London trade with shares in BHP Billiton up by 1.5 per cent while Rio Tinto lifted 1.6 per cent.
US sharemarkets traded both higher and lower in a choppy session on Monday. After being up 90 points in early trade, the Dow Jones was down 79 points in afternoon trade before ending 18 points weaker or 0.1 per cent. The S&P 500 index lost 0.2 per cent and the Nasdaq eased by 21 points or 0.5 per cent. Shares in Hewlett Packard rose by 4.7 per cent after the company announced that it would split into two companies separating computer and printer businesses from corporate hardware and services.
US long-term treasury prices rose slightly on Monday (yields lower) as traders exercised caution ahead of new bond supply. US Treasury will sell $27 billion in three-year notes on Tuesday, $21 billion in 10-year notes on Wednesday and $13 billion in 30-year bonds on Thursday. US two-year yields fell by 3 points to 0.536 per cent while US 10-year yields fell by 2 points to 2.42 per cent.
Major currencies regained some of the recent ground lost against the greenback during the European and US sessions on Monday. The Euro rose from lows near $US1.2515 to highs near $US1.2665, ending US trade near $US1.2650. The Aussie dollar rose from lows near US86.85c to highs around US87.80c, ending the US session near US87.60c. And the Japanese yen firmed from ¥109.63 per US dollar to ¥108.65, ending US trade near ¥108.79.
World oil prices rebounded on Monday in line with other commodities as the US dollar eased. A weaker greenback improves the purchasing power of European and Asian buyers for dollar-denominated commodities. Brent crude lifted from 27-month lows, rising by US48c or 0.5 per cent to $US92.79 a barrel while the US Nymex crude price rose by US60c or 0.7 per cent a barrel to $US90.34 a barrel.
Base metal prices rose by up to 1.9 per cent on Monday with zinc leading the gains while tin rose only by 0.6 per cent. Gold prices rebounded on Monday with the Comex gold futures quote up by $US14.40 an ounce or 1.2 per cent to $US1,207.30 per ounce. Iron ore was unchanged on Monday at $US78.90 a tonne.
Ahead: In Australia, the Reserve Bank Board meets. Data on tourist arrivals is released. In the US, weekly data on chain store sales is released with JOLTS job openings and the IBD economic optimism index.