Positive tone on Wall Street overnight

Equities on Wall Street advanced, lifted by better-than-expected earnings from Exxon Mobil and a pick-up in US consumer spending that surpassed forecasts.

Oil surged above US$100 for the first time since October 2008.

Exxon, the world's largest company, posted its biggest quarterly profit in more than two years. It helped keep the mood positive, even as anti-government protests rocked Egypt for a seventh day, forcing the government to close banks and the stock market.

Egypt had planned to raise 4 billion Egyptian pounds (US$683 million) this week at debt auctions, according to Bloomberg News.

Investors, however, focused on the good news in the world's largest economy where consumer purchases account for the lion's share of overall activity. US consumer spending rose 0.7 per cent in December after climbing 0.3 per cent the prior month, Commerce Department figures showed.

"We had continued strong earnings out of bellwethers like Exxon, and the US economy is improving," Richard Campagna, CEO of 300 North Capital LLC in Pasadena, California, told Bloomberg.

"Everybody has one eye on what's going on in Egypt, but things are getting back to normal."

In midday trading, the Dow Jones Industrial Average rose 0.24 per cent, the S&P 500 Index gained 0.48 per cent and the Nasdaq Composite Index climbed 0.24 per cent.

Also underpinning the mood were M&A deals such as by Alpha Natural Resources, which agreed to a US$7.1 billion deal to buy Massey Energy. The takeover would create the second largest US coal miner by market value.

Massey shares jumped more than 10 per cent.

The benchmark Stoxx Europe 600 Index fell 0.1 per cent to 280.05 at the close in London. Two stocks fell for every stock that rose.

Lufthansa and International Consolidated Airlines Group each declined more than 1 per cent as concern about the crisis in Egypt hurt airline and travel companies.

The euro advanced after an increase in euro zone inflation bolstered expectations interest rates in the region could climb at a faster pace than in the US and other advanced economies.

Asian central banks and some Middle East accounts were among the most active euro buyers, traders told Reuters. Some, including Brad Bechtel, managing director at FX execution firm Faros Trading in Stamford, Connecticut, said the euro could move toward US$1.40 in the weeks ahead, provided trouble in Egypt did not spread to other countries.

Investors decided today that violence and disorder in Egypt, while continuing, had at least not worsened.

"After Friday, people anticipated coming in to chaos and anarchy in Egypt. When that didn't happen, a lot of shorts were caught wrong-footed," Boris Schlossberg, director of research at GFT Forex, told Reuters.

The euro was last up 0.6 per cent at US$1.3700. Sterling jumped 1 per cent to US$1.6014, lifted by euro gains.

The US dollar was down 0.2 per cent at 81.96 yen.

Brent crude oil prices jumped above US$100 a barrel for the first time since October 2008 amid concern that unrest in Egypt could spread to Middle East oil producing countries or disrupt Suez Canal flows.

Opec Secretary General Abdullah al-Badri said on Monday the producer group would boost oil supply in the event of a real shortage, but did not expect current unrest in Egypt to affect Suez Canal or the Sumed pipeline oil flows.

Cold weather supporting heating fuel demand and solid economic data, including improved US Midwest factory activity and firmer consumer spending, also helped lift oil prices.

In London, ICE Brent crude for March rose 53 cents to US$99.95 a barrel, at 11.45am EST, after pushing as high as US$100.25 a barrel.

US crude oil for March delivery rose 70 cents to US$90.04 a barrel, narrowing the near-record discount versus Brent.

Spot gold fell, trading at US$1,328.25 at 1511 GMT, against US$1,338.30 late in New York on Friday. US gold futures for April delivery fell US$12.70 to US$1,329.00 an ounce.