World Market Overview

U.S. stocks ticked higher Monday, as energy stocks were boosted by cooler temperatures.

The Dow Jones Industrial Average edged up 7 points, or 0.1%, to 11499.

The Nasdaq Composite added 0.5% to 2656, while the Standard & Poor's 500-stock index rose 0.4% to 1249.

Stocks bounced between negative and positive territory, settling into modest gains in late afternoon trading.

Energy stocks rose, as colder weather helped boost crude-oil prices to settle at nearly $89 a barrel. Chevron gained 1.1%, while Exxon added 0.3%.

3M was also strong, climbing 1.3%, following reports that the company was considering preparing for the early exit of its chief executive, according to Bloomberg.

American Express weighed on the Dow, sliding 4% after Stifel Nicolaus said the company is more exposed following last week's Federal Reserve proposals on debit-card interchange fees, as investors worried about what could be next for credit cards.

European Markets

European stocks rose Monday, with the Italian market posting particularly strong gains, while airlines and retailers fell on fears of lost business caused by the severe wintry weather.

The Stoxx Europe 600 index advanced 0.7% to end at 278.38 points.

The benchmark finished last week little changed.

In Italy, the FTSE MIB index rose 1.5%, led by a 5.6% rally for shares of Banco Popolare.

An Italian newspaper said that the Cariverona Foundation may acquire a 5% stake in the bank, according to the Financial Times.

On the downside, Greece's ASE Composite index slumped 3.2%, with shares of National Bank of Greece down nearly 5%.

Autos were a key driver across Europe after upbeat comments from chief executives.

Shares of Volkswagen AG rallied 3.7% after its executive president for China told Bloomberg News the market for 2011 looks pretty healthy.

BMW AG gained 1.9%. Autos also helped give the French CAC 40 index a boost.

The index rose 0.5% to 3,885.08, with shares of Peugeot SA up 0.8% and Michelin SA up 1.6%.

The German DAX 30 index rose 0.5% to end at 7,018.60.

The FTSE 100 index ended up 0.3% at 5,891.61, with shares of oil and gas facilities provider Petrofac Ltd. up 2.5% after it released a bullish trading statement on Friday.

Deutsche Lufthansa AG fell 0.8% after severe weather disrupted flights across Europe.

Shares of British Airways PLC dropped nearly 2%.

Asian Markets

Asian stock markets ended mostly lower Monday after a volatile session that was dominated by geopolitical tensions on the Korean peninsula, although most stocks ended well off their lows.

Japan's Nikkei Stock Average declined 0.8%, Hong Kong's Hang Seng Index fell 0.3%, while Taiwan's Taiex gave up 0.6%.

South Korea and China were the most volatile markets, with the Kospi ending 0.3% lower at 2,020.28 in Seoul, after falling as low as 1,996.44 earlier in the day.

The Shanghai Composite, which skidded more than 3% earlier in the day, finished 1.4% lower.

The earlier tumble came on concerns that South Korea's planned artillery tests in the Yellow Sea would prompt a military reaction from North Korea, escalating tensions in the region.

But markets recovered sharply as fears eased in the wake of a CNN report that North Korea is willing to permit the return of U.N. nuclear inspectors.

The Seoul market was initially rattled by concerns that North Korea may respond to the tests aggressively.

But some analysts said the market fallout from the increased saber rattling would likely be temporary.

LG Display fell 2.6%, Posco declined 1% and Korean Air Lines Co. dropped 0.8%.

The Tokyo market was weighed by geopolitical tensions on the Korean peninsula and investor sentiment was also hurt by a weaker euro against the yen on Moody's five notch downgrade on Ireland's sovereign debt.

High tech exporters with exposure to the euro zone underperformed the broader market, with TDK down 2.3%, Olympus down 1.6% and Sony 1.1% lower.

Chinese property developers were weighed on by concerns that prices may drop and that supply may increase after the Ministry of Land and Resources Sunday urged local authorities to take measures to curb rapid growth in land prices and to maintain a stable land supply for residential use.

China Vanke fell 1.2% in Shenzhen, Poly Real Estate dropped 1.4% in Shanghai and China Overseas Land & Investment gave up 1.4% in Hong Kong.

Base Metals

Base metals closed mostly higher on the London Metals Exchange Monday following a day of thin, choppy trading driven by year-end profit taking.

Copper stood out from the complex, hitting an intraday peak of $9,257.50 a metric ton, just $10 shy of its record high last week.

The LME's three month copper contract closed at $9,201 a metric ton, up 1.4% on the day.

Crude futures rose Monday, buoyed by cold weather and the perception that the U.S. economy remains on the mend.

Light, sweet crude for January delivery settled 79 cents higher at $88.81 a barrel on the New York Mercantile Exchange.

Cold weather across Europe and much of the U.S. Northeast has given prices a lift in recent trading sessions, though volume remains light as many market participants close up shop ahead of the year end holidays.

Gold futures closed higher, extending gains into a second day as investors bought precious metals as a hedge against simmering North and South Korean political tensions and worries about the European sovereign debt situation.

Gold for February delivery ended $6.90, or 0.5%, higher at $1,386.10 an ounce on the Comex division of the New York Mercantile Exchange. Silver for March delivery added 22 cents, or 0.8%, to $29.36 an ounce.

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