The Dow Jones industrial average dropped 41.34 points, or 0.42 percent, to end at 9,778.86. The Standard &Poor’s 500 Index .SPX fell 3.64 points, or 0.34 percent, to1,064.66. But the Nasdaq Composite Index gained 5.18 points, or 0.24 percent, to close at 2,138.04.European shares posted a second straight session of losses on Monday, weighed down by weaker banks as investors retreated from risky assets ahead of a U.S. Federal Reserve meeting and G20 summit. The FTSEurofirst 300 index of top European shares closed down 0.7 percent at 999.06 points after falling 0.5 percent on Friday. The index rose above 1,000 on Wednesday after an 11-month gap and hit a year high of 1,013.63 a day later. Japan’s Nikkei stock average slipped 0.7 percent on Friday, with financials hit after consumer finance firm Aiful Corp

A leading economic body warned yesterday, European countries need to do more to rid their banking systems of bad debts. The OECD said in its annual survey of the European Union that the economies of many nations would continue to suffer until they release sufficient funds to recapitalise their banks. The European Commission will announce tomorrow that three new pan-European supervisory agencies are to help to enforce a central set of rules for the financial services industry. The Bank of England (BoE) Monetary Policy Committee member Andrew Sentance said yesterday, that when the global economy recovers there will be big upside risks to energy prices. A measure of the US economy’s prospects scaled a one-and-a-half-year high in August but a record rise in home loan defaults cast doubts on the durability of the recovery. The head of oil giant Total, yesterday warned that underinvestment in exploration due to the downturn will lead to a world shortage of oil. He also added that he believes the price of oil will increase to $100 a barrel, up from around $70.

Due for release today is Cad Retail sales, CAD retail sales less Autos, NZD Gross Domestic Product, USD House Price Index.

by Greg Secker

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