Europe, Asia Markets Advance in Thin Holiday Trade

Europe, Asia stock markets advance in thin holiday trade; oil gains amid Israeli offensive

European stock markets closed higher after thin holiday trade Monday, although falls on Wall Street limited gains from commodity stocks. Asian stocks rose moderately.
In Europe, Britain's FTSE 100 gained 2.44 percent, or 102.76 points, to 4,319.35. Germany's DAX closed up 1.63 percent, or 75.48, at 4,704.86 and France's CAC 40 closed 0.47 percent higher, or 14.51, at 3,130.71.
In U.S. midmorning trading, the Dow Jones industrial average fell 86.10, or 1.01 percent, to 8,429.45.

Broader indexes also fell. The Standard & Poor's 500 index fell 10.60, or 1.21 percent, to 862.20; the Nasdaq composite index fell 27.53, or 1.80 percent, to 1,502.71.
Investors, unwilling to make major moves during the holiday-shortened week, also digested a potential blow to dealmaking on Wall Street. On Sunday, Kuwait's government canceled its $17.4 billion K-Dow Petrochemicals joint venture with Dow Chemical Co., saying it was "very risky" because of the global financial crisis and low oil prices. The joint venture was set to begin Thursday.
Shares in European energy companies gave the market some support, advancing as oil prices rose above $40 a barrel on concerns about supply disruptions in the Middle East amid conflict between Israel and Gaza's Hamas rulers. Light, sweet crude was up 37 cents at $38.08 a barrel on the New York Mercantile Exchange.

Oil majors gained, with Britain's BP PLC 3.68 percent higher at 514.25 pence ($7.87) and France's Total SA up 0.11 percent at euro38.08 ($53.36). Royal Dutch Shell fell back after morning gains to close down 1.06 percent at euro18.15.
The advance in oil was welcome for some investors who have worried that plunging prices signaled a long and severe recession. Oil has fallen more than $100 per barrell from its peak of $147.27 a barrel on July 11 as a slowing economy curbed demand.
With many investors away for the holiday and their books already closed for the year, trade in most markets was quiet and marked by low volumes. The recent rash of government stimulus measures helped underpin sentiment despite worries that the first half of next year would see the global economy and company profits erode further.

"It will be very quiet for the next few days," said Andy Ash, a strategist at Monument Securities in London.
Investors are warily expecting a bounce at the beginning of the year, he said: "A cautious bounce with everybody desperately hoping that some of the economic figures will turn better."
This week investors will have their eye on how retailers are faring after the weak Christmas selling season. Despite steep discounts, many consumers remain nervous about the economy and their jobs, making them reluctant to spend.
Investors are also waiting for details of U.S. President-elect Barack Obama's proposed stimulus package for the economy following his Jan. 20 inauguration.

In Asia, markets closed modestly higher. In Tokyo, the Nikkei 225 stock average edged higher by 7.65 points, or a bare 0.1 percent, to close at 8,747.17, while Hong Kong's Hang Seng Index added 1 percent to 14,328.48.
The U.S. dollar was lower against other major currencies. The 15-nation euro rose to $1.4238 in morning trading in New York from $1.4067 late Friday.
The British pound, meanwhile, dipped to $1.4578 from $1.4677 late Friday as it circled parity, or a one-to-one exchange rate, with the euro. The pound hit its most recent record low of euro1.0198 in morning trading Monday.

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