9:30AM London advances in early trading Monday supported by merger deals.
The FTSE 100 rose 8.8 points, or 0.1%, at 6,029.7 at mid-day on Monday.

Advancers

Shares in RHM, which makes Mr Kipling cakes and Hovis bread, leapt 30.6% on the news, which will create the biggest food producer in Britain. Premier Foods gained 3.4%, and jumping on the bandwagon, Northern Foods rose 3.9% and Cadbury Schweppes gained 1.9%.

Cairn Energy added a further 2.1% following Friday strong run on continued speculation that Indian partner, ONGC, could be eyeing a move for Cairn assets in Rajasthan.

AstraZeneca rose 1.4% after US rival Pfizer halted development of its experimental drug Torcetrapib due to safety concerns.

Telecoms group Vodafone Group traded 1.3% higher after Credit Suisse upgraded the stock from neutral to outperform.

In the mid-caps, Aberdeen Asset Management rose 1.7% after it said full-year pre-tax profits increased to 79 million pounds.

Decliners

The only decliners in early trading was BAE Systems losing 2.3% amid continued concerns over its multi-billion pound contacts to supply fighter jet to Saudi Arabia.

7:30AM Asian stocks closed mixed on Monday, with the Japan down and HK up.
Asian markets ended mixed on Monday. Japan''s benchmark Nikkei 225 stock index fell 0.11%, to finish at 16303.59. Shares of Canon fell as much 1.2%. Consumer electronics conglomerate Matsushita slipped 1.3%. Among Japanese auto makers, which rely on the U.S. export market, Nissan Motor lost 1.4%, while shares of Nippon Steel rose 1.3% on reports the group will consider a cross-shareholding arrangement from Baosteel Group Corp of China.

In Hong Kong, strength in Chinese banks and laggard large-caps helped the Hang Seng Index edge higher. The Hang Seng Index rose 0.1% to 18702.73. China Construction Bank, which has the third-largest weighting in the benchmark index, rose 1% and China Merchants Bank gained 3.1%. Shares of China Mobile shed 0.8% while fellow index heavy HSBC Holdings fell 0.4%.

In South Korea, shares fell on U.S. market losses as disappointing U.S. economic data released late Friday sent the Korean won to more than a nine-year high. The Korea Composite Stock Price Index, or Kospi, fell 0.6% to 1426.46. LG.Philips LCD declined 2.6%, due to concerns over earnings in the first half of next year.

Taiwan shares rose for the fourth session in row to a new six-year high. The Weighted Price Index of the Taiwan Stock Exchange rose 0.4% to close at 7647.01. Australia''s S&P ASX/200 fell 0.1% after data released Monday showed Australian new home building approvals fell 7.4% in October, exceeding the 2% decline economists had expected. Australia''s Woodside Petroleum traded flat.

Shanghai Composite Index in China climbed to a five-year high after official media reported that the government will encourage financial institutions to invest more heavily in shares. The Shanghai Composite rose 2.8% to 2161.65, its highest close since July 23, 2001. Singapore Straits Times Index rose 0.5%, Malaysia KLSE Composite shed 0.3% and New Zealand NZX-50 index ended down 0.5% and Indonesia Jakarta Composite fell 0.2%.

6:30AM European markets gained a little on Monday on bid speculation.
European markets were higher on Monday. By mid morning, FTSE 100 in London climbed 0.5% to 6,049.8, Frankfurt Xetra Dax added 0.4% to 6,268.05, and the CAC 40 in Paris gained 0.4% to 5,272.54.

Advancers

Shares in Alstom gained 2.4%, while Bouygues added 0.3%. Spanish construction company FCC gained 2.4% after domestic rival Acciona said it had agreed to sell its 15.1% stake in FCC to property group Inmocaral. Inmocaral jumped 5.1%. Acciona shares were flat.

Endesa, meanwhile, along with rival Spanish electricity groups Iberdrola and Union Fenosa, gained after the government said it planned to raise electricity tariffs by an average 10 %, Endesa gained 0.6%, Iberdrola added 0.7% and Union Fenosa climbed 1.1%.

Eon, the German utility whose bid for Endesa could potentially be blocked by Acciona, climbed 0.4%. AstraZeneca, whose rival treatment Crestor is among its biggest growth drivers, gained 1.1%, while Roche, the Swiss group which is developing a new cholesterol drug, added 0.3%.

Decliners