US consumer credit surged by $5.01 billion in January, well ahead of analyst expectations and marked the fourth straight monthly gain. Revolving credit which includes credit cards fell by $4.35 billion, while non-revolving credit (including loans for big ticket items like cars) increased by $9.26 billion - the sixth straight monthly gain.

European shares fell on Monday, as escalating violence in the Middle East and surging oil prices dampened investor risk appetite. Banking stocks lost ground after ratings agency Moody´s downgraded Greece by three notches. Mining stocks also saw weakness following the slide in base metal prices. However energy companies were stronger with BP adding 0.7pct on a broker upgrade. The FTSEurofirst index lost 0.4pct, the German Dax fell by 0.2pct and the UK FTSE eased by 0.3pct.

US sharemarkets fell on Monday as the surge in oil prices continued to weigh on longer term growth prospects. Industrial stocks were hit hard. At the close of trade, the Dow Jones was lower by 80pts or 0.7pct. The S&P 500 fell by 0.8pct and the Nasdaq was lower by 39pts or 1.4pct.

US long dated treasuries recorded modest gains on Monday (yields lower). Global growth concerns due to soaring oil prices saw investors switched into safe-haven government bonds. The US treasury department is expected to sell US$63 billion in notes over the rest of the week. US 2yr yields were flat at 0.69pct and US 10yr yields fell by 1pt to 3.50pct.

The Euro traded in a tight range against the US dollar after the recent run of gains. The Euro hit early lows near US$1.3955, before rising to highs around to US$1.4035, and headed into the US close near US$1.3970. The Aussie dollar fell from highs of US101.85c to US100.90c, heading into to the US close near US101.10c. And the Japanese yen eased from 82.00 yen per US dollar to around JPY82.30, heading into the US close near JPY82.25.

US crude oil prices hit fresh 30-month highs on Monday in response to on-going fears that unrest in Libya could broaden through the Middle East. However oil prices were off their highs after speculation that Colonel Gaddafi may be seeking exit deal. The Nymex crude oil contract rose by US$1.02 or 1.0pct to US$105.4 a barrel. And the London Brent crude fell by US93c to US$115.04 a barrel. .

Base metal prices were sharply lower on the London Metal Exchange on Monday, as investors sentiment waned given the continued unrest in Libya. Nickel fell 4.6pct, while copper gave back 4pct. The gold price rose to fresh intra-day record highs on Monday in response to on-going violence in Libya while silver hit fresh 31-year highs. The Comex gold futures price touched a record US$1441.50, before closing up US$5.90 an ounce at US$1,434.50.

Ahead: In Australia, Business confidence data is due. In the US, no economic data is released.

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