London – World stock markets closed higher Monday, with European indexes buoyed by merger and acquisition activity, while U.S. markets were closed for Martin Luther King Jr. Day.
Sentiment was also supported by the gain in U.S. markets Friday, when the Dow Jones industrial average marked its 24th record close since the start of October.
Most Asian markets gained ground, with Hong Kong’s benchmark index returning above the 20,000 level, boosted by broad gains in the Japanese and Chinese exchanges. The Hang Seng Index surged 2.3 percent to close at 20,068.56, while Tokyo’s Nik kei 225 index advanced 0.90 percent to close at 17,209.92.
Britain’s FTSE 100 Index rose 0.4 percent to 6,263.50, while Germany’s DAX Index gained 0.4 percent to 6,731.74 and France’s CAC 40 gained 0.2 percent to 5,631.
It was a busy day for merger activity, with General Electric Co. agreeing to buy the aerospace business of Smiths Group PLC, Britain’s third-largest aerospace company, for $4.8 billion in cash. Smiths also said it will return $2.1 billion to shareholders, sending the company’s shares up 11.1 percent to close at $21.44 on the London Stock Exchange.
In Norway, digital video company Tandberg Television ASA said it agreed to be bought by U.S.-based Arris Group Inc. in a deal worth about $1.2 billion. Tandberg Television shares soared 15.1 percent to $15.37 in Oslo trading.
“We’re in a phase of economic growth, and that gives chief executives the confidence to restructure, which is what mergers and acquisitions is all about,” said Mike Lenhoff, chief strategist at Brewin Dolphin Securities in London.
It’s a trend that is “very likely to continue,” he said.
Shares of British Airways fell 1.5 percent to $10.63 in London after thousands of cabin crew employees voted to strike following disputes centering on sick pay and pensions.
Further talks are set for later this week, both sides said.
Deutsche Boerse AG was up 5.3 percent to close at $202.59 on the strength of its Clearstream business.
