IBT Staff Reporter

The euro erased early gains against the dollar on Monday as caution set in after initial investor calm in the wake of the release of European banks' stress test results late on Friday. Early risk-taking sentiment faded, with European shares down 0.4 percent .FTEU3 by mid-morning. Just seven of 91 banks failed the tests, including six in Spain and Greece, for an overall capital shortfall of 3.5 billion euros.

Robust U.S. company earnings and surprisingly vigorous euro zone economic data generally trumped investor skepticism about European bank stress tests on Monday to lift global stocks and bolster the euro against the dollar

Gold gained on Monday on bargain hunting and purchases from jewelers but investors were on the sidelines after a European bank stress test showed few surprises and failed to spur safe-haven buying last week. Platinum rose to its strongest in nearly a month on fund buying driven by gains in equities. Asian shares rose as solid U.S. corporate earnings and strong euro zone data offset growing skepticism the banks were not rigorously examined.

The euro firmed against the dollar on Monday as investors bought into riskier assets, calmed after the release of European banks' stress test results late on Friday. Just seven of 91 banks failed the tests, including in Spain and Greece, for an overall capital shortfall of 3.5 billion euros.

Japanese exports rose more than expected in June from a year earlier but the pace of increase slowed for the fourth straight month, a sign the economic recovery may lose steam on moderating overseas demand.

Daily foreign exchange trading volume in Tokyo rose 15.7 percent this year from a year earlier, thanks to the rising popularity of FX margin trading among Japanese individual investors, a survey by a banking industry group showed on Monday.

Japan's government needs to weaken the yen and undertake an expansionary fiscal policy to beat deflation, the leader of Japan's Your Party, a small opposition party that made strides in an upper house election, said on Monday.

Google's dominant position on the global online search market slipped slightly in the second quarter, as it retreated from the Chinese market, research firm Strategy Analytics said on Friday.

Oil rose past $79 on Monday, supported by improved risk appetite and expectations that a forecast severe Atlantic hurricane season could bring further disruptions to oil and gas operations in the U.S. Gulf of Mexico. Asian shares rose and the euro extended gains on Monday as solid U.S. corporate earnings and strong euro zone data offset growing skepticism that a stress test on European banks were not strict enough.

Gold prices recovered in Asian trade Monday mainly on bargain hunting while euro's gains also helped the bullion. Gold for immediate delivery was seen trading at $ 1192.48 an ounce at 12.00 noon Singapore time while US gold futures for August delivery was at $1,192.2 an ounce after settling nearly $8 lower on Friday following the European stress tests.

Fund flows into commodity markets continued to rise in the first half of 2010 despite the difficult six months but analysts are increasingly warning of a slowdown as weak returns dent investor confidence. Money managers have piled into commodities in recent years in search of stronger returns and protection away from the troubles of equity and bond markets during the financial crisis. But for many, the promise of diversification, hedges against inflation and any kind of correlation between risi...

Sony Corp will likely return to profitability in the April-June quarter, beating market expectations for an operating loss, on solid sales and cost cuts, the Nikkei business daily reported on Monday.

The euro hit a seven-week high against the yen on Monday as a rise in shares prompted dealers to unwind long yen positions, but scepticism about the credibility of the euro zone's bank stress tests limited its gains versus the dollar.

Investors took some reassurance that European banks had passed stress tests on their ability to deal with a debt crisis, prompting European stock futures prices to rise on Monday.

The euro edged up and Asian shares rose on Monday as solid U.S. corporate earnings and surprisingly strong euro zone data offset growing skepticism that stress tests on European banks were not strict enough.

EU tests of banks' ability to withstand financial shocks, criticized as too easy after only 7 out of 91 failed, face their own stress test in the markets on Monday with early signs pointing to a more positive response.

BP Chief Executive Tony Hayward will collect a pay and pension package worth at least 11.8 million pounds ($18.03 million) when he steps down from his role at the company, the Times newspaper reported on Sunday.

Japan's three biggest banks are expected to report solid first-quarter results this week, driven by bond trading profits and lower credit costs, but few will see it as a sign of full-fledged recovery as their core lending activities remain sluggish.

There is no basis for a major appreciation in the yuan exchange rate, the State Information Center, a government think tank, said on Monday.

Worries that China is throwing up obstacles to foreign business are misplaced, Commerce Minister Chen Deming said in an article published on Monday.

The Australia Dollar has opened up in the mid 0.8900's after another modestly strong showing from US and European equity markets on Friday.

A recent study has found that eating more red and processed meat each day leads to weight gain for both men and women.

Despite the uncertainty facing the European banking system the AUD/USD remained range bound on Friday bouncing between 0.8900 and 0.8970 for the majority of the Asian and offshore trading sessions.

The Charity Cancer Research (CCR) in Britain has reported that more women are developing womb cancer nowadays compared to 35 years ago.

Euro zone member Slovakia will have strong reasons to reconsider its help to indebted euro group member Greece, the Eurogroup Chairman Jean-Claude Juncker was quoted as saying.

One in five Australians prefer not to eat or be without heating or mobile phone than have no Internet access for a day, according to a survey by telecommunications and media firm Telstra Corp. Ltd. released Monday.

What's odd about this scenario?German business confidence is soaring while U.S. consumer sentiment sinks.

The Queesland education department has detected cancer-causing asbestoslux in the walls of 115 schools it had inspected.

The BlackBerry, made by Canada's Research In Motion , is open to misuse that poses security risks to the United Arab Emirates, which said on Sunday it would seek to safeguard its consumers and laws.