U.S. stocks turned lower ahead of the close of Monday's regular session, as industrial stocks lost ground. The Dow Jones Industrial Average recently fell 7 points to 11,000 and the S&P 500 Index fell 1 point to 1,164.

The indexes had been slightly higher ahead of anticipated earnings by industry heavyweights, and as investors weighed potential moves by the Federal Reserve to aid the fragile economy. Meanwhile, expectations continue to rise for the Federal Reserve to unveil another round of stimulus for the economy following a bleak September jobs report released Friday.

Trading volume was light Monday as bond markets and federal offices closed in the U.S. for the Columbus Day holiday while no economic data were due for release.

European market

European stocks ended with modest gains Monday, as expectations continued to build that the Federal Reserve and other central banks will step in to boost the global economy.

The Stoxx Europe 600 index gained 0.4% to 263.20. The U.K.'s FTSE 100 index rose 0.3% to 5,672.40 and the French CAC 40 index added 0.1% to 3,768.49.

The German DAX 30 index rose 0.3% to 6,309.51. The gains followed a strong end to the week for Wall Street, where the Dow Jones Industrial Average closed above 11,000 for the first time in five months. Financial stocks were mostly higher amid the hopes for further economic stimulus.

Shares of Standard Chartered gained 2.1% in London and ING Group traded up 0.4% in Amsterdam. Italian car maker Fiat rose 1.9% as auto stocks also benefited from hopes of further easing measures by central banks. Shares of Nokia Corp. gained 1.4% in Helsinki.

The handset manufacturer said it has started shipping the C7, its second smartphone based on the Symbian platform. Ratings downgrades weighed on several stocks, including U.K. telecommunications company BT Group PLC, which fell 1.4% after being cut to underperform from market perform at Sanford C. Bernstein.

Asian markets

Most Asian markets ended higher Monday, with coal and metal stocks leading Chinese markets higher while miners buoyed Australia's benchmark index.

China's Shanghai Composite Index gained 2.5%, while Hong Kong's Hang Seng Index tacked on 1.2% to 23,207.31, its highest closing level since June 2008. South Korea's Kospi fell 0.4%.

Markets in Tokyo were closed for a public holiday. The broad stock advances came in the wake of pre weekend gains on Wall Street despite a much weaker than expected U.S. payrolls report for September, as the data spurred hopes the Fed may launch fresh efforts to support the economy. Chinese shares extended Friday's steep gains, led by coal and metal plays.

Jiangxi Copper's Shanghai listed shares jumped by the day's 10% limit, while its Hong Kong shares added 4.4%. China Shenhua Energy's mainland shares gained 6.3% while its Hong Kong-listed shares tacked on 3.1%.

In Shanghai, Baoshan Iron & Steel rose 4.7%. Property developer China Vanke added 4.7% in Shenzhen after it posted a 160.1% year on year rise in September sales, breaking its monthly sales record for a second straight month.

Base metals

Base metals closed mixed on the London Metal Exchange Monday, with an announcement that ETF Securities will launch the first ever physically backed base metal exchange traded fund doing little to move the markets. The LME's benchmark three month copper contract closed the day down 0.2%, at $8,285 a metric ton.

Aluminum also closed down, but lead gained against Friday's kerb close, as did zinc which ended 1.7% higher at $2,328/ton. Market players said some metals were finding support in inventory declines, but a stronger U.S. dollar had weighed on the complex.

News of the new base metal ETFs failed to propel prices higher. Crude futures settled lower Monday, though rising gasoline futures prevented a larger drop due to the strengthening dollar.

Gasoline futures continued a two day rally sparked by Friday's government report on U.S. crop yields. The U.S. Department of Agriculture forecast lower yields for the U.S. corn harvest, sparking rising prices for ethanol, a fuel additive, that pulled gasoline along as well.

Front month November reformulated gasoline blendstock, or RBOB, settled 1.43 cents, or 0.7%, higher to $2.1655 a gallon, the highest settlement price in two months. Light, sweet crude for November delivery settled 45 cents, or 0.5% lower at $82.21 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled down 32 cents at $83.71 a barrel.

Gold futures recouped losses despite a strengthening U.S. dollar as investors continue to view any price pullbacks as bargain opportunities.

The most actively traded gold contract, for December delivery, gained $9.10, or 0.7%, to settle at $1,354.40 an ounce on the Comex division of the New York Mercantile Exchange.

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