Energy shares lift Wall Street in light volume

Energy shares helped the Dow and S&P 500 end a three-day losing streak, even as investors worried rising fuel costs will undercut economic growth.

The Dow Jones industrial average gained 34.43 points, or 0.30 percent, to 11,671.88. The Standard & Poor's 500 Index added 4.73 points, or 0.37 percent, to 1,274.48. The Nasdaq Composite Index rose 9.03 points, or 0.33 percent, to 2,716.83.

European shares rose as a strong start to the US earnings season boosted optimism about upcoming company results, and reassuring comments from Portugal soothed nerves over the sovereign debt crisis.

The pan-European FTSEurofirst 300 index of top shares closed up 1.2 percent at 1,147.15 points, hovering near the highest closing level since mid-September 2008.

The Nikkei average edged lower, backing away from an eight-month high hit at the end of last week, as worries over the euro zone's debt problems prompted some investors to lock in profits on recent gainers.

The benchmark Nikkei closed down 0.3 percent or 30.36 points at 10,510.68, after hitting an eight-month closing high on Friday.

The broader Topix index was up 0.1 percent at 926.94.