A roundup of trading on major world markets:
NEW YORK - US stocks have reversed losses to finish higher amid encouraging signs from the White House and Congress that a deal was in reach on the budget and debt ceiling.
At the close on Monday, the Dow Jones Industrial Average added 64.15 points (0.42 per cent) at 15,301.26.
The broader S&P 500 rose 6.95 (0.41 per cent) to 1,710.15, and the Nasdaq Composite gained 23.40 (0.62 per cent) at 3,815.27.
LONDON - European stocks wavered with investors on edge over the approaching US debt deadline that has for now failed to overly alarm markets.
But a growing chorus of officials warned on Monday that a failure by US leaders to end the deadlock would have catastrophic consequences that could affect the entire global economy.
Adding to the volatility was a disappointing batch of Chinese economic data, while on the corporate front shares in French car giant Peugeot plunged.
In London at close, the benchmark FTSE 100 index gained 0.32 per cent to 6,507.65 points.
In Frankfurt, the DAX 30 was virtually unchanged, down just 0.01 per cent to 8,723.81 points, while the CAC 40 in Paris edged up 0.07 per cent to 4,222.96 points.
The euro rose against the greenback to $1.3580 from $1.3543.
HONG KONG - Asian markets slipped, with traders growing nervous that talks to raise the US borrowing limit remain deadlocked just days before the deadline to avoid a default.
Adding to selling pressure was a disappointing batch of Chinese trade figures at the weekend that indicated a recent pick-up in the world's No 2 economy may not be as strong as hoped.
Sydney fell 0.44 per cent, or 23.0 points, to 5,207.9, Seoul eased 0.23 per cent, or 4.63 points, to 2,020.27 and Singapore was off 0.54 per cent in the afternoon.
However, Shanghai added 0.43 per cent, or 9.62 points, to 2,237.77 despite the weak data at the weekend, with investors buying consumer-related shares owing to a bigger jump in inflation than expected.
Tokyo, Hong Kong and Jakarta were closed for public holidays.WELLINGTON - The NZX 50 Index fell 6.603 points, or 0.1 per cent, to 4734.167.