US markets

U.S. stocks climbed Monday despite ongoing unrest in Egypt as investors took heart in the Suez Canal's continued operation and U.S. economic data that topped expectations. The Dow Jones Industrial Average climbed 46 points, or 0.4%, to 11870. The measure is up 2.5% for the month, on pace to close out the month with the first January advance in four years and the best January performance in 14 years.

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The Nasdaq Composite Index advanced 0.6% to 2702. The Standard & Poor's 500 stock index added 0.7% to 1285. Both the Nasdaq and S&P 500 are on track for the best January performance since 2007. The energy sector led Monday's ascent as crude oil futures topped $92 a barrel on the continued turmoil in Egypt. Egypt isn't a major oil exporter, but the Suez Canal and Sumed pipeline transport roughly 3 million barrels a day through the country. Earnings from oil giant Exxon Mobil also bolstered the energy sector. The company's fourth quarter earnings surged 53%, beating analysts' expectations thanks to higher oil prices, improved refining profit margins and its unconventional gas production operations.

Monday's broader stock advance came as investors digested the latest reports out of Egypt, where a coalition of opposition groups called for a million people to take to Cairo's streets Tuesday to ratchet up pressure on President Hosni Mubarak to leave. U.S. and other world leaders were intensifying calls for an orderly transition to a democratic system as demonstrations against Mubarak's administration continued into a seventh day. The unrest drove stocks to the biggest one-day drop in months Friday as fears ramped up that the Suez Canal, which handles as much as one million barrels of oil a day, could be closed. But after shippers over the weekend and early Monday said traffic was still moving, the market let out a sigh of relief, fueling gains in stocks. U.S. economic data supported Monday's climb in stocks, with the latest reading of consumer spending showing U.S. consumers, supported by fatter paychecks and low prices, accelerated spending at the end of 2010 by more than expected.

The Chicago Business Barometer also topped expectations and a separate report showed inflation still remains below the mark central bankers consider consistent with price stability. Alcoa led the Dow's climb with a 2.1% rise. The aluminum giant agreed to pay $240 million for an aerospace fastener business from TransDigm Group that would bolster Alcoa's fastening systems operations. TransDigm Group, which isn't a Dow component, edged up 1.5%. But Intel shed 1.6% after the chip maker reported an error in the design of a chipset for its newest processors that will result in a charge. Among other stocks in focus, Massey Energy jumped 9.6% after Alpha Natural Resources said it has reached a deal to buy the rival coal company for $7.1 billion in cash and stock. Alpha Natural slid 7.7%.

European markets

European markets ended marginally lower Monday, as investors remained nervous about the growing unrest in Egypt. Banks, travel companies and car makers posted some of the biggest losses. The Stoxx Europe 600 index fell 0.1% to end at 280.05, paring intraday losses as gains on Wall Street boosted sentiment. The Stoxx index rose 1.5% in January. Auto stocks, which are particularly sensitive to Chinese growth expectations, were among the biggest fallers in Europe. Daimler AG fell 2.5% in Frankfurt and PSA Peugeot Citroen was down 1.2% in Paris. Financial stocks also fell, with Societe Generale, which has a subsidiary in Egypt, down more than 2%.

Royal Bank of Scotland Group PLC slipped 2.4%. Dutch insurer Aegon NV dropped 2.4% after it was downgraded to hold from buy at Societe Generale. France's CAC 40 edged up 0.1% to end at 4,005.50, as shares of Carrefour SA surged more than 5% after the retailer confirmed it was studying different projects that could lead to the listing of certain of its assets. In Spain, the IBEX 35 index rose 0.6%, as Banco Santander and Banco Bilbao Vizcaya Argentaria both advanced 0.8% following weekend reports that European leaders are continuing to negotiate an overhaul of the region's rescue fund. The German DAX 30 slipped 0.4% to 7,077.48 and the U.K.'s FTSE 100 ended down 0.3% at 5,862.94. BG Group PLC shares rallied 5% after the energy firm told Dow Jones Newswires that the unrest in Egypt has had no effect on its gas production in the North African nation. Airlines and travel companies traded lower as worries about travel restrictions hit the stocks. TUI Travel PLC fell 2.6%. International Consolidated Airlines Group, formed by the merger of British Airways and Spain's Iberia, fell 1.8% and Air France KLM was down 1.9%.

Asian markets

Asian stock markets ended mostly lower Monday, as investors feared ongoing unrest in Egypt could spread to neighbouring countries in the Middle East and push up prices of commodities. Japan's Nikkei Stock Average ended down 1.2%, South Korea's Kospi Composite was 1.8% lower and Hong Kong's Hang Seng Index was down 0.7%. China's Shanghai Composite Index was the only Asian market to buck the trend, finishing 1.4% higher on thin trading volumes ahead of the Chinese Lunar New Year holiday, which starts later this week. Investor sentiment was battered after the DJIA dropped 1.4% Friday, its largest one day fall since Nov. 16, 2010, due to the continued political turmoil in Egypt. In China, oil and gold stocks led the market higher on prices for those resources. Shandong Gold Mining was up 7.5% while PetroChina gained 1.2% and Sinopec Shandong Taishan Petroleum advanced 2.1%. Some Hong Kong-listed mainland Chinese developers rebounded following recent losses that were triggered by last week's new tightening measures from Beijing for the property sector. Japanese exporters were hit by the concerns about escalating tensions in Egypt, and also by the yen's strength earlier in the session, as investors sought the perceived safety of a lower yielding currency. Among exporters, Tokyo Electron shed 1.5% and Sony lost 2.7%. Fujitsu dropped 6.2%, and Konica Minolta fell 7.8% after both cut their full year profit forecasts. Inpex was up 0.6%, helped by the sharp spike in crude prices. Nissan Motor fell 2.2% on news it is suspending operations at an auto plant in Egypt.

Base metals

Base metals closed higher on the London Metal Exchange Monday, spurred by a rally in the exchange's flagship copper contract, which ended the session in record territory. LME three month copper finished the PM kerb at $9,745 a metric ton, up 2.3% on the day and just $36 from its mid-January all-time high. Market players said a sharp fall in LME copper inventories together with an improving economic outlook for the U.S., following a string of more upbeat economic numbers, had boosted investor sentiment. The metals also experienced strong buying interest as investors squared their positions ahead of Chinese New Year celebrations, which begin Wednesday and last a week. Light, sweet crude on the New York Mercantile Exchange, settled $2.85 higher at $92.19 a barrel Monday, while Brent crude prices passed $101 a barrel amid continuing turmoil in Egypt. Widespread anti-government protests in Egypt have lifted crude prices sharply higher the last two trading sessions. Monday, protesters called for a general strike and said they planned a million man march Tuesday to mark one week since the start of the upheaval. Though Egypt is not a major oil producer, the continued protests stoked fears that shipping traffic at the Suez Canal, a key energy transit route, could be interrupted or that the unrest could spread to major oil producers elsewhere in the region. Gold futures fell as stronger U.S. economic data and easing concern over civil unrest in Egypt eroded the precious metal's safe haven appeal. The most-actively traded gold contract, for April delivery, declined $7.20, or 0.5%, to settle at $1,334.50 an ounce on the Comex division of the New York Mercantile Exchange. The nearby February contract lost $6.90, or 0.5%, to $1,333.80.
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