US Market

U.S. stocks climbed Monday as encouraging corporate earnings reports fueled growing optimism over the global economic recovery. The Dow Jones Industrial Average rose 101 points, or 0.9%, to 11973, approaching the 12000 level. Leading the measure, Alcoa surged 4.6%, while International Business Machines rose 2.4%. Intel was also strong, rising 1.6%, after the chip maker's board authorized the company to buy back another $10 billion in stock.

Reversing earlier losses, McDonald's edged up 0.5%. The fast-food giant's fourth-quarter earnings rose 2.1%, but investors had been disappointed with a slowing in the company's same-store sales growth at the end of the year. The Nasdaq Composite rose 1% to 2717. The Standard & Poor's 500 index advanced 0.6% to 1290, with its materials sector leading the climb.

Among other gainers, Vulcan Materials rose 4.8%, International Paper gained 3.9%, and United States Steel added 2.4%. Monday's broader stock gains came ahead of President Barack Obama's State of the Union address to Congress Tuesday. The president is expected to call for "shared sacrifice" from both parties, and to reach out to the GOP with a nod to possibly lowering the nation's corporate income-tax rate as part of an overhaul of the corporate-tax code, according to people familiar with the speech preparations.

European markets

European stocks finished mostly higher Monday, tracking gains on Wall Street, while Russian shares extended losses on news of an explosion at Domodedovo Airport, Moscow's busiest commercial airport. The Stoxx Europe 600 index gained 0.3% to end at 281.99, reversing earlier losses. In Moscow, the Micex stock index slumped 2%. The French CAC 40 index rose 0.4% to 4,033.21, as shares of Compagnie de Saint-Gobain SA rallied 2.7% to 42.72. UBS raised its price target on the building-materials firm to 50 from 37 and reiterated its buy rating. Bucking the positive trend, shares of Philips slumped 5.5% in Amsterdam. The group reported an 84% rise in fourth-quarter profit to 463 million, which fell short of the 500 million consensus forecast. Technology-related stocks were mostly lower across Europe. Shares of chip-equipment maker ASML Holding NV dropped 1.3% in Amsterdam and STMicroelectronics fell 0.7% in Paris. Germany's DAX 30 edged up 0.1% to 7,067.77. Car shares were mostly lower. Daimler fell 0.5% and BMW shed 0.8%. Italian auto group Fiat SpA fell 2.8% after it was downgraded to underperform from neutral at Bank of America Merrill Lynch. In London, the FTSE 100 index--which Gijsels said has more exposure to defensive stocks than other markets--rose 0.8% to 5,943.85. Among U.K. shares, Royal Bank of Scotland Group PLC dropped 1.9% and Lloyds Banking Group PLC fell 3.4% amid worries about future regulation of the sector.

Japanese markets

Japanese stocks rose as Honda Motor Co. led exporters higher on a positive sales outlook and the euro's recent appreciation against the yen, while in China stocks declined ahead of the Chinese New Year holiday next week. Thai, Indonesian and Philippine markets were among the worst hit, extending their losing streak as foreign investors continued to sell stocks after seeing hefty gains in the region last year. Japan's Nikkei Stock Average ended 0.7% higher, while South Korea's Kospi advanced 0.6%. Among the decliners, China's Shanghai Composite fell 0.7%, Hong Kong's Hang Seng index dropped 0.3% and Taiwan's Taiex gave up 0.1%. The mixed performance came on caution ahead of the U.S. Federal Reserve's policy announcement Wednesday, with persistent worries about further policy tightening from Beijing also continuing to weigh on sentiment. Metals-related companies led the fall in China as investors took profits on recent gains, and as strong cash demand ahead of the week-long holiday kept investors from buying stocks. The drop came amid continuing expectations that the People's Bank of China may announce its first rate hike this year around the Lunar New Year holiday. Shares of Yunnan Copper Co. dropped 2.4% and Chenzhou Mining Group Co. tumbled 3.8% in Shenzhen, while Jiangxi Copper Co. gave up 2.7% and Aluminum Corp. of China lost 1.7% in Shanghai. In Tokyo, the euro's rise against the yen Friday boosted exporters, with Nikon Corp. climbing 1.9% and Olympus Corp. rising 1.2%. Honda Motor Co. jumped 3.8%, after Nomura Securities upgraded the stock to buy from hold, citing upwardly revised forecasts for profitability and growth at its North American business.

Base metals

Base metals closed mixed on the London Metal Exchange Monday, though a weaker dollar and strong auto sales figures provided some support for prices. LME three-month copper closed up 0.9% at $9,529 a metric ton, while tin hit a record high of $28,190/ton, before closing at $28,090/ton, up 1.3% on the day. With little macro economic data to provide direction, the metals looked to the currency markets for cues. A weaker U.S. dollar provided support for the dollar-denominated metals, which appear cheaper when the greenback falls. Copper, which is widely used in construction, appliances and automobiles, also found support from strong vehicle sales figures Monday. News of a suicide attack at Russia's busiest airport may have also boosted sentiment for copper later in European trading, as investors looked for perceived 'safe' assets.

Oil

Crude oil futures traded lower Monday on concerns that Saudi Arabia could raise oil production to ward off higher prices. Light, sweet crude for March delivery settled $1.24 lower at $87.87 a barrel on the New York Mercantile Exchange, after earlier hitting a two-week low of $87.40. Gold futures settled higher, snapping a two-day losing streak as talk of inflation and a lower dollar propped up prices against weakness in other metals. Gold for February delivery added $3.50, or 0.3%, to $1,344.50 an ounce on the Comex division of the New York Mercantile Exchange. Futures had climbed as high as $1,352.40 an ounce earlier in the day, but lost steam as the session progressed.