European sharemarkets started the week's trading in a bullish mood, with a jump in mergers and acquisitions activity boosting exchanges.
In North America, the Canadian sharemarket rose, reversing a two-day slide.
This is in contrast to Australasian markets, which closed lower yesterday after the Dow’s 100-point drop on Friday. (Wall Street is closed for the Martin Luther King holiday.)
The UK witnessed a dramatic change in International Power's fortunes after it initially led the FTSE 100 gainers list on reports that utility group GDF Suez was negotiating a tie-up.
Those gains evaporated when International Power confirmed the negotiations but also said talks had ended and no deal had been reached. The share slumped 3.4%, becoming the FTSE 100's biggest decliner. GDF Suez finished 2.2% higher.
Meanwhile, the Cadbury takeover saga entered its endgame with all participants quiet ahead of Tuesday's bid deadline.
Kraft has until then to raise its bid while Hershey, said to be mounting a counter-bid, considers its next move.
Some major Cadbury shareholders says Kraft will have to raise its bid up to 900p a share it if is to win over its long-term investors. Cadbury shares rose 1.8% to 807.5p, well above Kraft's current offer.
The pan-European Stoxx 600 Index rose 0.7% to 258.2. The FTSE 100 ended up 0.7% at 5494.4, Germany's DAX gained 0.7% to 5918.6 and France's CAC-40 finished 0.6% higher at 3977.5.
At the close of European equity markets, the euro was flat at $US1.4389 and up from a low at $US1.4335. The pound was 0.4% higher at $US1.6324.
Canadian stocks rose for the first time in three sessions, led by raw-materials producers, as metal prices gained on a declining US dollar.
Goldcorp added 1.1% as futures advanced. First Quantum Minerals increased 3.6% as copper recouped losses from last week.
The S&P/TSX Composite Index had risen 50.22 points, or 0.4%, to 11,735.59 less than an hour before the close.
Meanwhile, crude oil futures traded higher, with US crude for February delivery rising to $US78.37 a barrel in London.
Gold rose to $US1134.50 an ounce at the London gold fixing.
Activity should pick up when Wall Street resumes tonight (NZ time) as fourth-quarter earnings reports resume. Among big companies due to report this week: Citigroup, Wells Fargo, Goldman Sachs and GE.
Tue, 19 Jan 2010