NEW YORK – Another wave of corporate deal-making carried stocks sharply higher on Monday.

French drug maker Sanofi-Aventis announced plans to buy health care products company Chattem for $US1.9 billion, and mining equipment maker Bucyrus International said it will buy Terex Corp’s mining equipment division for $US1.3 billion.

Meanwhile, Dutch auto maker Spyker Cars submitted a new offer to buy Saab from General Motors.

Traders said the flurry of corporate deal activity was giving the stock market a major boost of confidence.

Aluminum maker Alcoa registered the largest gains among the 30 stocks that make up the Dow Jones Industrial Average, jumping more than nine per cent after an analyst upgrade and the announcement of a $US11 billion joint venture deal in Saudi Arabia.

An upgrade of chip maker Intel helped boost technology stocks, adding to gains from Friday.

In mid-afternoon trade the Dow was up 101.95 points, or 0.99 per cent, to 10,430.84.

The broader S&P 500 index was up 12.88, or 1.17 per cent, to 1,115.35 and the technology-heavy Nasdaq composite index had gained 27.14, or 1.23 per cent, to 2,238.83.

LONDON – European stock markets surged higher, powered by a strong start to the day on Wall Street and good performances in the oil sector.

Shell rose 2.79 per cent on news reports that it would sell some of its fields in Nigeria worth up to $US5 billion in order to reduce its exposure in the country.

Cairn gained 4.66 per cent after announcing that it would begin underwater oil exploration off the coast of Greenland next year, a year ahead of schedule.

Banks, which suffered losses last week, bounced back.

The London FTSE 100 index added 97.18 points, or 1.87 per cent, to 5,293.99 points.

FRANKFURT – Germany’s Dax gained 99.32 points, or 1.7 per cent, to end the day at 5,930.53 points.

PARIS – The CAC 40 index rose 77.62 points, or 2.05 per cent, to finish at 3,872.06.

TOKYO – A strong showing on Wall Street and the best Japanese export figures for more than a year were unable to provide momentum for any real movement.

Data showed exports fell at the slowest pace in more than a year in November, benefiting from the economic recovery in China.

Japan logged a trade surplus for a 10th straight month, soothing fears that its rebound from recession is running out of steam due to a stronger yen and renewed deflation.

Commodity-related shares performed well following a rise in crude prices.

The Nikkei-225 gained 41.42 points, or 0.41 per cent, to 10,183.47.

HONG KONG – Blue-chip Chinese property firm China Overseas Land fell one per cent as big local developers were hit because of their exposure to the mainland.

Banks with exposure to Dubai debt also fell.

The Hang Seng Index shed 227.78 points, or 1.08 per cent, to 20,948.1.

WELLINGTON – The benchmark NZSX-50 index closed down 4.42 points, or 0.14 per cent, at 3,149.81, having opened down 3.74 points.

Turnover was worth $NZ89.6 million ($A71.57 million). There were 40 rises and 43 falls among the 113 stocks traded.