Global markets

US stocks edge higher on mergers, tax-cut deal

Wall Street rose modestly with investor appetite for stocks lifted by a flurry of merger deals and the expected congressional approval of a tax-cut extension.

The Dow Jones industrial average rose 18.24 points, or 0.16 percent, at 11,428.56. The Standard & Poor's 500 Index increased 0.06 points, or 0.00 percent, to 1,240.46. The Nasdaq Composite Index lost 12.63 points, or 0.48 percent, to 2,624.91.

European shares rose for a sixth straight day, the longest winning streak in five months, on optimism for the economy and with China's decision not to raise interest rates boosting miners.

The pan-European FTSEurofirst 300 index rose 0.33 percent to end the day provisionally at 1,129.33 points, its highest close since September 2008. It is the index's longest winning run since July.

Japan's Nikkei average clawed back towards a seven-month high on Monday as Chinese shares showed resilience to Beijing's efforts to curb inflation and a softer yen supported exporters.

The market has been jittery about tightening steps in China, so investors in Tokyo greeted with relief an increase in bank reserve requirement ratios on Friday, followed by Monday's gains in closely watched Chinese equities, adding to the positive mood.

Foreign funds have been aggressively buying lagging Tokyo shares, pushing the Nikkei up more than 12 percent over the past six weeks. The benchmark remains an underperformer globally on the year, however, having shed around 2.4 percent year to date.

The benchmark Nikkei closed the day up 0.8 percent or 81.94 points at 10,293.89.