US Stocks

U.S. stocks advanced Tuesday, as investors drew encouragement from Microsoft Corp.'s $8.5 billion deal for Skype Technologies and from signs of strength in the U.S. economy and overseas.

The Dow Jones Industrial Average climbed 75.68 points, or 0.6%, to close at 12760.36, led by Walt Disney Co., which rose 1.9%, and Hewlett-Packard Co., which gained 1.3%.

The Standard & Poor's 500-stock index tacked on 10.87, or 0.8%, to 1357.16, with utilities and consumer-discretionary stocks in the lead. The Nasdaq Composite gained 28.64 points to 2871.89.

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Microsoft's deal for Skype boosted hopes for further consolidation among technology companies, although the Windows maker's stock shed 0.6% after announcing its most-expensive deal ever. The company said its $8.5 billion buyout of Skype will boost products including Xbox, Kinect and Windows Phone. Stocks stayed higher after data showed U.S. wholesalers stockpiled goods in March as sales rose strongly, suggesting some improvement in an economy that slowed early this year.

European Stocks

European stock markets rallied Tuesday as hopes for a new deal on Greek debt boosted financial shares, while strong results helped lift Deutsche Post AG and InterContinental Hotels Group PLC. The Stoxx Europe 600 index rose 0.9% to settle at 282.92. The Greek ASE Composite Index rose 1.4% to 1,369.30, with Alpha Bank and National Bank of Greece rising 9.3% and 7% respectively. The move came after The Wall Street Journal reported that Greece expects a new EUR60 billion aid package to be agreed as early as next month. The report cited a senior Greek government official. Financial stocks turned higher across the rest of Europe, with the biggest gains coming for lenders seen as having the most exposure to Greece.

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Shares of Credit Agricole SA rose 3%, while those of Societe Generale climbed 2.1%, leading the French CAC 40 index 1.1% higher to close at 4,052.51. Among other peripheral markets, Spain's IBEX 35 index rose 0.8% to 10,474.4, as banks reversed early losses to trade higher. Banco Santander rose 1.6%. Portugal's PSI 20 index slipped 0.6% to close at 7,723.11. The U.K.'s FTSE 100 index rose 1.3% to close at 6,018.89. Shares of low-cost airline easyJet PLC rose 2.9% after it reported rising revenue. Oil and gas firm BG Group PLC led the index's decliners, falling 1.6% after reporting a 38% drop in first-quarter net profit. Germany's DAX 30 index climbed 1.2% to settle at 7,501.52. Shares in Deutsche Post AG gained 1.3% after the group reported sales and earnings before interest and taxes that were slightly ahead of expectations.

Asian Stocks

Most Asian markets rose Tuesday, with Chinese shares climbing amid hopes coming monthly inflation data might show a moderation and Japanese stocks gaining on some upbeat results and a weakened yen. An overnight advance on Wall Street encouraged investors, although European sovereign-debt worries kept them in a cautious frame of mind. China's Shanghai Composite Index rose 0.6% to 2890.63, Japan's Nikkei Stock Average gained 0.3% to 9818.76, and the benchmark Philippine index added 1.1% to 4303.13. India's Sensex slipped 0.1% to 18512.77.

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Elsewhere in the region, Taiwan's Taiex declined 0.1%. Indonesian stocks rose 0.4%, Singapore's Straits Times Index added 0.6% and Thailand's SET gained 1.2%. South Korean and Hong Kong markets were shut for public holidays.

The rise for Chinese bourses came a day before the scheduled release of April's consumer price index, which analysts say could set the pace for monetary policy. On average, economists surveyed by Dow Jones Newswires forecast April CPI would ease to 5.2%. Several interest-rate sensitive Chinese stocks advanced during the session. Agricultural Bank of China added 1.4% and Poly Real Estate Group rose 1.3%. Japanese shares were supported by a 12% jump in Sumitomo Heavy Industries and a 3.7% advance in Toshiba after both reported strong earnings. Chubu Electric Power, which bowed to government demands to shut down its only nuclear plant, rose 1.9% to recover some of Monday's steep loss. The yen's weakness gave some exporters a bit of a lift; Sony rose 0.3% and Sharp 0.4%.

Base Metals

Base metals closed mostly higher on the London Metal Exchange Tuesday, although investors were cautious heading into the close of the afternoon's open outcry session as they await more key data out of China, the world's largest consumer of the commodities. China is scheduled to release April inflation data and other economic indicators Wednesday. The LME's three month copper contract closed the session at $8,905 a metric ton, up 0.2% on Monday's PM kerb close. Three month aluminum was one of the stronger performers of the day, closing up 1.5% at $2,650/ton. Crude futures settled higher Tuesday, led by a surge in gasoline futures following reports the Mississippi River floods are curtailing refinery operations and fuel shipments. Light, sweet crude for June delivery rose $1.33, or 1.3%, to $103.88 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $1.78 higher at $117.68 a barrel. Refineries are bracing for potential shutdowns and disruptions to fuel shipments ahead of the floodwaters now moving toward the Louisiana refining corridor, which has investors fearful about gasoline supplies. Precious metals prices rebounded for a second day, supported by traders looking to cover bets on lower prices, bargain-hunters and concerns about European sovereign debt. The most-actively traded gold contract, for June delivery, settled up $13.70, or 0.9%, at $1,516.90 a troy ounce on the Comex division of the New York Mercantile Exchange. The May delivery contract ended $13.70, or 0.9%, higher at $1,516.60 a troy ounce.

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