China has cut its target for economic growth in 2012 from 8.0pct to 7.5pct.

The US ISM services index rose from 56.8 to 57.3 in February, above forecasts for a result near 56.1. The prices paid index jumped from 63.5 to 68.4. Revised data showed that durable goods orders fell by 3.7pct in January (previously shown as down 4.0pct). The euro zone services gauge eased from 50.4 to 48.8 in February with the German gauge down from 53.7 to 52.8.

European shares eased on Monday with the revision to the Chinese economic growth target weighing on resources stocks. The benchmark FTSEurofirst 300 index eased 0.6pct with the UK FTSE down 0.6pct while the German Dax lost 0.8pct. In London trade BHP Billiton was down by 2.9pct and Rio Tinto fell by 3.9pct.

US sharemarkets fell sharply at the start of trade in response to the revised economic forecast in China but recovered over the session. Shares in Apple fell by 2.5pct ahead of the launch of its new iPad version later this week. The Dow Jones index fell by 106pts in early trade but at the close of trade, the Dow was lower by 15pts or 0.1pct. The S&P 500 fell by 0.4pct and the Nasdaq lost 25pts or 0.9pct.

US treasuries eased on Monday (yields higher) in response to further evidence of a strengthening economy. Restraining yields was the downward revision to Chinese economic growth forecasts and doubts on the Greek debt swap deal. US 2yr yields rose by 2pts to 0.297pct and US 10yr yields rose by 3pts to 2.00pct.

Major currencies were mixed against the greenback in European and US trade on Monday. The Euro rose from near US$1.3160 to around US$1.3240, and was near US$1.3220 in late US trade. The Aussie dollar eased from highs around US107.20c to near US106.65c, and was close to US106.65c in late US trade. And the Japanese yen lifted from 81.63 yen per US dollar to JPY81.14 but eased to near JPY81.41 in late US trade.

Benchmark crude oil prices were trapped by competing forces on Monday. Serving to restrain prices was softer European economic data and the downward revision to Chinese economic growth forecasts. Pushing oil prices higher was brighter US economic news and continued jitters about the nuclear ambitions of Iran. US Nymex rose by US2 cents to US$106.72 a barrel while London Brent crude rose by US15c to US$123.80 a barrel.

Base metal prices fell on Monday after China cut its economic growth target. Metals fell up to 3pct with tin faring worst while copper lost just 0.9pct. The gold price also eased in line with other commodities with the April Comex gold price lower by US$5.90 or 0.3pct to US$1,703.90 an ounce.

Ahead: In Australia, the Reserve Bank Board meets. Government finance data and the Balance of Payments are released. In the US, weekly retail sales data is released.