1:00PM NY, 5:00 PM Frankfurt European markets advanced, lifted by merger deals in the financial sector.

European stock markets closed higher on Monday, driven by merger deals in the financial sector with British banking giant Barclays and insurer Friends Provident in the spotlight. Gains generated by commodity-related equities and automakers also provided a boost. Germany advanced 0.9% at 7,944.21, France also added 0.9% at 6,009.16, and the U.K. gained 0.6% to 6,624.40.

Dutch digital map data provider Tele Atlas was a notable gainer, jumping 31.1% after Dutch handheld navigation-system developer TomTom offered 2 billion euros ($2.8 billion), to buy the firm. TomTom rose 11%. Norwegian oil-rig company Seadrill rose 5.2%, while Acergy SA, oil services provider, gained 3.5%. Oil-services companies rallied after Transocean agreed to buy rival GlobalSantaFe Corp. for $17 billion.

In Frankfurt automakers DaimlerChrysler gained 2.7%, while Volkswagen rose 1.3%. In the banking sector, shares of Depfa Bank jumped gained 12% after Hypo Real Estate agreed to buy it for 5.7 billion euros ($7.9 billion).

In Paris Peugeot Citroen SA, Total SA and Michelin & Cie were leading advancers. Peugeot gained 1.8% on broker upgrade. Oil company Total also gained 1.8%. Tiremaker Michelin increased 2.8%.

In London the energy sector posted gains, with shares of oil giant Royal & Dutch Shell up 1.1%. On the financial sector, Friends Provident shares climbed 7.8% on news that the company and fellow insurer Resolution were in merger talks. Shares of Resolution added 1.1%. Among other U.K. insurers, Legal & General rose 2.7% and Prudential up 1.4%. Barclays advanced 3% after it agreed to sell a 19% stake to China Development Bank and Singapore''s Temasek Holdings in order to fund an improved bid of 67.5 billion euros for Dutch bank ABN Amro.


11:30AM U.S. market averages rallied, boosted by merger deals. Opsware surged 36%.

U.S. market averages rallied in late Monday trading, driven by several multibillion-dollar deals in various sectors. Opsware (OPSW: chart) surged 36% after Hewlett-Packard (HPQ: chart) said it will buy the automation software maker for $1.6 billion to enhance its portfolio of business technology optimization software. United Rentals (URI: chart), equipment rental company, gained 2% after it agreed to be taken private by Cerberus Capital Management for $6.6 billion.

Oil service stocks continued to posted solid gains, benefiting from news that GlobalSantaFe (GSF: chart) and Transocean (RIG: chart) agreed to merge in order to create a combined company with an estimated enterprise value of $53 billion. The networking sector also showed considerable strength, helped by 6% advance in the shares of Tellabs (TLAB: chart) amid reports that the company will get a $7 billion takeover offer from Nokia Siemens.

Wireless, pharmaceutical, and utilities stocks also moved to the upside, while some healthcare provider and natural gas stocks bucked the upward trend. In late morning trading, the Dow Jones industrial average rose 113.24, or 0.82%, to 13,964.32. The Standard & Poor''s 500 index rose 12.90, or 0.84%, to 1,547.00 and the Nasdaq composite index rose 17.43, or 0.655, to 2,705.03. Bonds were little changed, with the yield on the benchmark 10-year Treasury note flat at 4.95% from late Friday.


9:45AM Wall Street opened higher, lifted by strong earnings at Merck and Schering-Plough.

Wall Street opened higher, benefiting from robust profits in the pharmaceutical sector and news of a takeover in the oil services industry, financial and equipment-rental sectors.

The Dow was led higher by drug giant Merck (MRK: chart) which rose 6% after it posted better-than-expected 12% earnings increase in Q2 and lifted its annual earnings forecast. Rival Schering-Plough (SGP: chart) added 1% as both its quarterly revenue and earnings beat expectations.

Barclays (BCS: chart) improved its offer for ABN Amro (ABN: chart) to $93 billion and added a cash portion to it. ABN shares added 0.4%. In other deal news, United Rentals Inc (URI: chart), equipment rental company, agreed to be taken private by Cerberus Capital Management for $4 billion. Shares of United Rentals rose 2%.

Further in M&A action, Hewlett-Packard (HPQ: chart) said it will buy automation software maker Opsware Inc. (OPSW: chart) for about $1.6 billion. The computer company said the deal will enhance its portfolio of business technology optimization software. The Dow Jones industrial average was up 72.27 points, or 0.52%, at 13,923.35. The Standard & Poor''s 500 Index was up 7.84 points, or 0.51%, at 1,541.94. The Nasdaq Composite Index was up 8.12 points, or 0.30%, at 2,695.72.


9:00AM Buyout news and strong earnings boost pre-market mood.

U.S. stock futures moved to the upside on Monday, boosted by a multibillion-dollar deal in the oil drilling sector as well as stronger-than-expected earnings from drug makers Merck and Schering-Plough.