Currencies
The euro rallied from a 16-month low against the dollar on Monday as market participants pared bearish bets on the single currency ahead of key European events this week although investors remained overwhelmingly negative due to sovereign debt concerns.
With euro net short positions at a record according to recent data from the Commodity Futures Trading Commission, the currency was susceptible to short-covering. But gains were contained as German Chancellor Angela Merkel reignited fears of a Greek default.
The Swiss franc traded slightly higher against the euro after news that Swiss National Bank Chairman Philipp Hildebrand resigned in the wake of a scandal over a controversial currency trade made by his wife just weeks before he set a cap on the country's soaring currency.
Versus the Swiss franc, the euro was down 0.2 percent at 1.21250 francs.
In late afternoon New York trade, the euro was 0.4 percent higher versus the dollar at $1.27720 after hitting its lowest level since September 2010 at $1.26660 in thin Asian trade.
The dollar was down 0.2 percent against the yen at 76.827 yen, staying above a two-month low of 76.30 yen hit last week.
Energy
Oil prices fell on Monday on concerns about the euro zone's economy, but the decline was limited by fears about Iran's threats to shut the Strait of Hormuz oil-shipping route and Tehran's ongoing dispute with the West over the Iranian nuclear program.
The EU is expected to move up to Jan. 23 a key meeting on whether to embargo Iran's oil, according to EU diplomats.
Brent February crude fell 61 cents to settle at $112.45 a barrel, having dropped below its 200-day moving average of $112.72 after gaining more than 5 percent last week.
U.S. February crude fell 25 cents to settle at $101.31 a barrel, having dropped to $100.10 and finding support above the key $100 level.
Investors kept an eye on Nigeria, OPEC member and Africa's top oil producer, as thousands of people took to the streets to protest the end of fuel subsidies.
Police killed two protesters and wounded more on Monday.
Precious metals
Gold eased on Friday, snapping a five-session winning streak, but trade was choppy as investors digested a report of better U.S. job growth and the unemployment rate near a three-year low.
The metal still notched its biggest weekly gain in five weeks after it broke ranks with a slumping euro in the last two days.
Spot gold fell 0.3 percent to $1,617.19 an ounce.
U.S. gold for February delivery settled down $3.30 at $1,616.80.
Spot silver fell 1.9 percent to $28.72 an ounce, headed for a weekly climb of nearly 4 percent -- its biggest rise in a month.
Platinum group metals fell, with platinum down 0.9 percent for the day to $1,397.40 an ounce, and palladium dropped 3.9 percent to $610.43 an ounce.
Stock indices
U.S. stocks ended slightly higher on Monday in a light-volume session as investors stayed cautious ahead of corporate earnings and key auctions for European debt this week.
Months of summits and meetings have still not convinced investors that Europe will avoid messy defaults or a break-up of the euro zone.
Debt sales by Spain and Italy later in the week should provide insight about investors' confidence in plans to solve the euro zone financial crisis.
The Dow Jones industrial average gained 32.62 points, or 0.26 percent, to 12,392.69.
The Standard & Poor's 500 Index gained 2.89 points, or 0.23 percent, to 1,280.70.
The Nasdaq Composite Index gained 2.34 points, or 0.09 percent, to 2,676.56.
Source : Windsor brokers
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