US stocks edge up on fiscal talks, as European shares sink

US stock markets edged higher today after politicians made tentative progress in talks on avoiding tax hikes and spending cuts that would hurt the economy while escalating tensions in the Middle East boosted oil prices.

The Dow Jones industrial average gained 10.45 points, or 0.08 percent, to 12,552.83. The Standard & Poor's 500 Index gained 1.49 points, or 0.11 percent, to 1,354.82. The Nasdaq Composite Index gained 6.75 points, or 0.24 percent, to 2,843.69.

European shares sank to a 3-1/2-month closing low today and chalked up their worst week since the end of May on persistent concerns over US fiscal policy and the euro zone debt crisis.

The FTSEurofirst 300 ended down 1 percent at 1,067.45, its lowest close since Aug. 2, taking its weekly loss to 2.7 percent.