insto - Australian financial markets

US stock markets returned from the Labor Day break on a positive tone while investors shunned the dollar and embraced gold and oil.

The S&P500 index gained 0.9 per cent as the rise in metals prices brightened the profit outlook for firms such as Alcoa and Chevron. Also boosting stocks were comments from the IMF that the crisis phase is ‘almost certainly behind us’.

US markets had a soft end to the week, on Friday as consumer confidence fell and oil fell below US$60/barrel.

The S&PP500 stock index shed 0.4 per cent as US consumer sentiment data showed a decline to 64.6 from 70.8 month. Energy stocks also lost ground as the price of oil continued to fall and Chevron warned of lower profits.  In financials, US consumer lender CIT fell almost 18 per cent after it was reported that the FDIC refused to guarantee its debt.