US Markets

U.S. stocks registered slim gains Monday in another choppy session as bargain hunting investors scrounged for buying opportunities after four straight weeks of sharp losses. The Dow Jones Industrial Average finished up 37 points, or 0.34%, at 10854.65, after dropping 4.01% last week and 15% throughout the four-week losing skid. Trading was volatile.

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The Dow advanced as much as 203 points early in the session, but pared gains throughout the morning and almost turned negative before bouncing back. The index notched triple-digit gains in the final hour of trading, but that rally faded before the closing bell. Hewlett-Packard led the blue chips higher, rising 85 cents, or 3.6%, to $24.45, after slumping 20% Friday as investors worried about the company's extensive plans to reshape its business model. AT&T gained 46 cents, or 1.6%, to 28.45.

Financial stocks kept the rally in check. Bank of America slumped 55 cents, or 7.9%, to 6.42, as Wells Fargo slashed its price target on the bank, citing market volatility and recessionary fears. Goldman Sachs Group tumbled 5.25, or 4.7%, to 106.51, and Dow component J.P. Morgan Chase fell 94 cents, or 2.7%, to 33.41. The Dow's advance comes after a tumultuous few weeks of trading that have put major indexes in correction territory and bruised investor sentiment.

The Standard & Poor's 500-stock index edged up 0.29 point, or 0.03%, to 1123.82. Telecom, technology and industrial stocks rose, while the financial and energy sectors declined. The technology-heavy Nasdaq Composite gained 3.54 points, or 0.15%, to 2345.38. The Russell 2000 index of small-capitalization stocks fell 0.36 point, or 0.06%, to 651.34, its fifth straight daily decline.

European Markets

European stock markets ended higher Monday in a rebound from last week's rout, with shares in Italian oil major Eni SpA among the top performers as Libya appeared on the verge of a leadership change. The Stoxx Europe 600 index ended with a gain of 0.8% at 224.90, after the index fell to its lowest closing level in more than two years Friday.

Shares in Eni rose 6.2%. The company was the biggest foreign producer of oil in Libya before the start of the uprising, which now may be drawing close to an end. Rebel forces have swept into the Libyan capital of Tripoli after meeting little resistance from Col. Moammar Gadhafi's forces. The gain for Eni helped lift Italy's FTSE MIB index 1.8% to 14,861.6. Analysts at Deutsche Bank said that, after Eni, the oil companies with the biggest relative exposure to Libya were Austria's OMV AG and Spain's Repsol YPF, which climbed 5.1% and 3%, respectively.

Most other sectors across Europe were also higher, with defensive stocks such as drug makers among the strongest performers. Among drug stocks, GlaxoSmithKline PLC rose 2.8% in London and Roche Holding AG gained 3% on the Swiss market. Analysts at Deutsche Bank Monday lifted their recommended sector allocations to both pharmaceuticals and the oil sector, pointing out that the peak-to-trough fall in drug-sector earnings during the recent downturn was just 7%. Roche was also upgraded to buy from hold by analysts at Royal Bank of Scotland.

Utility stocks also posted strong gains, including a 3.6% rise for E.ON AG in Frankfurt. The volatility in bank stocks continued as French lender Credit Agricole SA gave up strong early gains to fall 1.6% and Royal Bank of Scotland Group PLC dropped 5.3%. The weakness for RBS on the London market was more than offset by gains for mining stocks, including a 3.9% rise for Randgold Resources Ltd. as gold prices continued to rally.

The FTSE 100 index rose 1.1% to close at 5,095.30, while the CAC 40 was also 1.1% higher, at 3,051.36. On the downside, some car makers continued to suffer from worries over the economic outlook, with BMW AG posting a 4.2% decline. The German DAX 30 index ended down 0.1% at 5,473.78.

Asian Markets

Most Asian markets surrendered gains to end lower Monday as worries about the European debt crisis and global economic outlook kept investors on edge. Japan's Nikkei Stock Average ended 1.0% lower, as hopes that authorities would intervene to curb the yen's strength pulled the currency back from a post-war record against the dollar, but not enough to lift shares of most exporters.

South Korea's Kospi slid 2.0%, China's Shanghai Composite dropped 0.7%, and Taiwan's Taiex fell 0.4%. Hong Kong stocks ended higher after a rollercoaster session as mainland property developers skidded after China Resources Land's earnings didn't measure up to some analyst expectations.

The Hang Seng Index rose 0.5% after changing direction a few times. Among index heavyweight shares, HSBC Holdings PLC rose 2.0% to recover some recent losses, while China Mobile added 2.9% on its inexpensive valuations and appeal as a defensive stock. But overall gains were restricted as shares of China Resources Land tumbled 7.4% after first-half results disappointed some analysts.

The drop also hit other Chinese property developers, dragging down China Overseas Land & Investment by 6.5% and Shimao Property Holdings by 3.7%. Korean shipbuilders remained under selling pressure on worries about global demand, with Daewoo Shipbuilding & Marine Engineering losing 4.9% and Hyundai Heavy Industries shedding 4.4%. In Tokyo, several exporters were pressured by worries the local currency would affect their earnings and on fears about the global economic outlook. Toyota Motor and Honda Motor each shed 2.5%, while Sony gave up 1.0%.

Commodities

Base metals closed lower on the London Metal Exchange Monday as early gains were eroded by a strengthening dollar and jitters in global equity markets. At the close of open outcry trading, flagship three-month copper was 1.2% lower at $8,710 a metric ton, while nickel lost the most ground, ending down 1.7% at $20,850/ton.

Only tin finished in positive territory, closing just 0.1% higher at $22,825/ton. European crude futures fell Monday as Libya's rebels captured most of the country's capital, raising hopes that the six-month conflict there could be nearing an end. But

Brent crude, widely seen as the strongest barometer of global oil supply and demand, pared much of its declines toward the end of the day, as traders tamped down expectations for a quick resumption of Libyan crude exports.

October Brent crude on the ICE Futures Europe exchange traded down 36 cents, or 0.3%, to $108.26 a barrel. The contract fell as low as $105.15 a barrel earlier in the day after initial reports that Libyan rebels had captured most of Tripoli.

U.S. benchmark crude, meanwhile, rose sharply and extended its gains toward the session close. Market participants attributed the rally to strength in U.S. equities markets and the expiration of the front-month contract, which often leads to volatility as traders scramble to close out positions. September light-sweet crude on the New York Mercantile Exchange settled up $1.86, or 2.3%, at $84.12 a barrel at expiration.

The more actively traded October contract settled up $2.01, or 2.4%, at $84.42 a barrel. Gold ended at a new record high amid growing speculation the U.S. won't be able to resist another round of stimulus and broader worries about the global economy. Meanwhile, a six-month-long civil conflict in Libya is drawing towards a conclusion, re-igniting concerns about political instability in the region.

The most actively traded contract, for December delivery, gained $39.70, or 2.1%, to settle at a record $1,891.90 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract touched an intraday record of $1,899.40. Thinly traded August-delivery gold settled at a record $1,888.70 a troy ounce, up $39.80, or 2.2%, after touching an intraday record of $1,895.00.