MARKETS / FINANCE

HSBC and Barclays on Monday reported a surge in bad debts to a combined $21 billion as recession took its toll on borrowers, but Britain's two biggest banks offered encouragement they could be through the worst.

U.S. stocks rose on Monday after data showed the manufacturing sector shrunk at a slower pace in July, while rising commodity prices boosted natural resource stocks.

Health insurer Humana Inc posted a higher-than-expected quarterly profit as an improved performance in its Medicare plans for the elderly offset a decline in earnings from its business serving employers.

A widely followed nationwide index on U.S. manufacturing could show the sector back on a growth path when the next report comes out in early September.

The Australian Dollar opens higher on Monday at 0.8355 after signs emerged on Friday night that the economic decline in the United States is moderating therefore reducing the allure of the greenback as a safe haven.

U.S. stocks extended gains on Monday, pushing major indexes up 1 percent as investors snapped up shares of natural resource companies and banks after fresh data pointed to signs of economic stabilization.

Oil rose more than $2 to hit a one-month high near $72 on Monday as positive Chinese economic data and firmer equities bolstered hopes of economic recovery and higher energy demand.

The punishing four-year decline in U.S. auto sales may have reached a turning point this week -- just as Michael Papa handed over the keys to his 1996 Ford Explorer for a government-sponsored trade-in.

Oil rose more than $2 to hit a one-month high above $71 on Monday as positive Chinese economic data and firmer equities bolstered hopes of economic recovery and higher energy demand .

Auto sales for July which will be announced on Monday are expected to be boosted by the government's cash-for-clunkers program. The program boosted industry wide deliveries of new vehicles to the highest levels of this year.

U.S. stocks headed for a higher open on Monday as solid results from major European banks and expectations of a sales rebound for Ford Motor Co reinforced hopes that the recession is moderating.

Shares in UBS soared on Monday after reports said the Swiss bank would not pay a fine and would pass on fewer client names than expected in a settlement of U.S. tax litigation to be finalized later this week.

Long after President Barack Obama's first term ends in 2013, millions of U.S. families will still be paying the price for the recession.

In a confirmation of the general macro environment, swaptions vol is back to the previous highs of late 2008.

U.S. stock index futures rose on Monday following reassuring bank results from Europe and as investors bet that the global economy is on the road to recovery.

HSBC Holdings Plc, Europe's biggest bank, said its first-half profit halved from a year ago to $5 billion as it was hit by rising bad debts in the United States, Europe and Asia.

Barclays Plc fell short of expectations with an 8 percent rise in half-year profit as bad debts at Britain's second biggest bank almost doubled to offset buoyant earnings from its enlarged investment bank.

Oil rose to a one-month high near $71 a barrel on Monday as positive Chinese economic data and firmer equities bolstered hopes of economic recovery and higher energy demand.

Stock index futures pointed to a higher open on Wall Street on Monday, tracking gains in Asia and Europe on mounting hopes that the global recession is abating.

World stocks climbed to a new 2009 high on Monday with banking news from Europe generally positive and signs of a pick up in Chinese economic activity lifting Asian shares.

Asian stocks crawled up to an 11-month high on Monday as Chinese shares cheered more signs of economic activity picking up speed, giving a boost to oil and copper prices while hurting the safe-haven U.S. dollar.

Shares in UBS are expected to rise on Monday after reports the bank would not have to pay a fine as part of the settlement of a tax dispute with the United States that is to be finalized later this week.

Asian stocks inched up to an 11-month high on Monday on mounting evidence that the global economic recovery is picking up speed, giving a boost to oil and copper prices while hurting the safe-haven U.S. dollar.

Two law firms are investigating potential shareholder claims against Huron Consulting Group Inc concerning possible securities violations after the company disclosed an accounting scandal on Friday

Japan's Nikkei average inched down 0.1 percent on Monday, with investors cautious ahead of more corporate earnings reports, but banks rose after Mitsubishi UFJ Financial Group posted its first profit in three quarters.

Investment bank Goldman Sachs' reputation among both the general public and financially sophisticated Americans has been damaged by the events of the past year, the Financial Times reported on Sunday, citing research conducted for the paper.

Top U.S. officials said on Sunday it may be necessary to extend jobless benefits to firm up an economic recovery unlikely to create jobs until next year and declined to rule out future tax increases to tame massive budget deficits.

Wall Street may have momentum on its side this week as the S&P 500 tries to puncture the 1,000 level, but the rally's staying power will depend on whether U.S. data and corporate earnings provide more signs of economic stabilization.

U.S. Treasury Secretary Timothy Geithner said on Sunday more actions may be necessary to firm up economic recovery, including extended unemployment aid, and declined to rule out future tax hikes to reduce massive budget deficits.