9:45AM U.S. markets opened modestly higher.
Wall Street posted modest gains at opening on Monday, reflecting some profit taking after last-week strong gains, as well as news of two mega mergers, including the UK''''s Barclays which agreed to buy Dutch bank ABN Amro for $91 billion in the biggest bank deal in history. Shares in ABN Amro slipped 1.4%, while Barclays dropped 2.1%. Bank of America (BAC: chart) agreed to buy ABN Amro''s U.S. bank, LaSalle. In another deal, drugmaker AstraZeneca agreed to pay $15.6 billion for U.S. biotech company MedImmune, sending biotechnology stocks notably higher. AstraZeneca (AZN: chart) shares lost 4.3%, while MedImmune (MEDI: chart) surged 17.5%.

Among blue-chip stocks, Pfizer (PFE: chart) lost 1% after Prudential downgraded the stock to neutral from overweight, citing a lack of catalysts to drive the stock price higher. Exxon Mobil (XOM: chart) fell 0.3% after Deutsche Bank downgraded the oil company to hold from buy, citing valuation. On the upside, Caterpillar Inc. (CAT: chart) and IBM (BM: chart) advanced after both were upgraded by brokers. Caterpillar rose 1.5%, while IBM gained almost 1%. In the first hour of trading, the Dow Jones industrial average was up 4.80, or 0.04%, at 12.966.78. The Standard & Poor''s 500 index was up 1.56, or 0.11%, at 1,485.91, while the Nasdaq composite index was up 2.25, or 0.09%, 2,528.64. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.69% from 4.67% late Friday


9:30AM London equities are little changed Monday despite M&A.
The UK market was little changed on Monday. The FTSE 100 was unable to hold opening gains, falling 0.1% to 6,483.4.

Advancers

Scottish & Newcastle led the advancers, up 2.4% on reports that Diageo and SABMiller were considering making a break-up bid for the brewer. British Airways added 0.2 % as it had reportedly approached a number of private equity groups about a possible bid for Iberia, the Spanish flag carrier.

Mining stocks advanced in line with firmer metals prices on commodities markets. Antofagasta was 1 % higher and was Vedanta 0.8% stronger. Property stocks also returned to the upside. Land Securities was 0.9% higher and Slough Estates recovered 0.7%.

Decliners

Barclays fell 1.5% after news of its offer for ABN saw shares in the Dutch Bank breached the 36.25 euros per share level of the all-paper recommended offer, up 2.2%. ABN officials are today due to hear details of a rival break-up bid from Royal Bank of Scotland, Santander and Fortis.

AstraZeneca fell 2.1% after it unveiled plans to spend $15.2 billion on the acquisition of MedImmune of the US. GlaxoSmithKline is also down 1.1%. 888 also fell after Ladbrokes walked away from a bid for the online gaming group. 888 fell more than 2%.


9:15AM Asian stocks finished higher Monday with Japan ending slightly higher.
Asian markets finished mostly higher on Monday. The Nikkei 225 gained 0.02% to 17,455.37. Hoya, a tech company to report its earnings during the current earnings period, closed down 3.4%. The results were not disappointing but investors thought they were not strong enough to spark new buying incentives. Komatsu soared 4.8% after Caterpillar reported Friday better-than-expected quarterly earnings and lifted its outlook for 2007. Tokyo Star Bank gained 4.2% after reports that Lone Star Group is gearing to sell possibly its entire 67% stake in the bank.

In Hong Kong, Hang Seng Index shed 0.05% to close at 20,556.57. China Mobile and HSBC, traded in the opposite direction to each other Monday. China Mobile fell 2.8% after it reported its first-quarter results after Friday market close. HSBC continued its upward trend on a report that Saudi Arabia-based investor Maan al-Sanea, the second-largest shareholder in the bank, is considering boosting his stake in the bank. HSBC gained 0.3%.

The Korea Composite Stock Price Index, or Kospi, closed up 0.7% at 1,544.35, after hitting a new intraday high of 1,554.50 during the session. Posco, the world third-largest steelmaker by output, continued gaining, ending 3.6% higher. Heavy-equipment maker Doosan Infracore surged 5.7% and Doosan Heavy Industries & Construction, which owns 40% of Infracore, rose 2.8%. Hyundai Heavy Industries, of which the heavy equipment business accounts for about 10% of its total revenue, gained 4.9%.

The Shanghai Composite Index ended up 3.5% at a record 3,710.89. In large caps, China United Telecommunications soared 6.4%, Air China rose 9.1% and Baoshan Iron & Steel gained 5.4%. Taiwan shares ended 0.9% higher at 8,010.46 in light volume.


9:00AM U.S. stock futures pointed higher on strong earnings and takeover activity.
U.S. stock futures pointed to a robust opening, with the Dow Jones industrial average expected to rise above the 13,000 mark for the first time Monday. On Friday, the Dow rose more than 150 points to 12,961.98, posting its seventh straight gain and third straight record close. The highly positive pre-market sentiment was generated by merger activity, as well as optimism about corporate profits.

A multibillion-dollar takeover deal sent European stocks sharply higher and provided a strong boost to the U.S. stock futures. British bank Barclays PLC (BCS: chart) agreed to acquire Dutch bank ABN Amro NV (ABN: chart) for $91.16 billion in what would be the world''''s biggest bank deal. According to the terms of agreement, ABN Amro has to sell its U.S. unit, LaSalle Bank, to Bank of America Corp. for $21 billion. ABN also is holding talks with a consortium of the Royal Bank of Scotland, Banco Santander Central Hispano and Fortis over a possible counter bid. ABN Amto shares gained 1% in the pre-open, while Barclays lost 1.1%. In another merger deal, British drug maker AstraZeneca PLC (AZN: chart) said it will buy U.S. drug maker MedImmune Inc. (MEDI: chart) for $15.6 billion.

Earnings reports were also in focus Monday morning. Hasbro Inc. (HAS: chart) said it swung to a Q1 profit, beating expectations. The second-largest U.S. toymaker posted profit of $32.9 million, or 19 cents a share, compared to a loss of $4.9 million, or 3 cents a share a year ago. Net revenue rose nearly 34%, reaching $625.3 million. The company’s shares rose 3.4% in the pre-open. Swiss pharmaceutical company Novartis SA (NVS: chart) said its profit increased 11%. Companies reporting after the closing bell include cell phone chip maker Texas Instruments Inc. (TXN: chart). No Dow components release earnings Monday. Ahead of Monday''''s market opening, Dow futures expiring in June rose 11.00, or 0.08%, to 13,030. The Standard & Poor''''s 500 index futures slipped 0.10, or 0.01%, to 1,493.00, while Nasdaq 100 futures rose 1.25, or 0.07%, to 1,863.75.