[R]9:45AM U.S market averages opened higher, boosted by merger activity.[/R]
Wall Street gained ground on Friday, boosted by takeover activity including a Microsoft Corp. acquisition of online advertising firm Aquantive and a potential divestiture by General Electric Co. Stronger-than-expected reading on consumer sentiment also contributed to the solid gains. The preliminary University of Michigan index of consumer sentiment for May came in at 88.7, vs. expectations of unchanged index at 87.1.

Shares of Aquantive (AQNT: chart) surged 77% in early trading, while Microsoft (MSFT: chart) lost 1.2%. General Electric (GE: chart) advanced 1% amid reports that it is close to a deal to sell its plastics division for nearly $11 billion to Saudi Basic Industries Corp. Again in the Dow, Intel (INTC: chart) jumped 2.3% after Merrill Lynch upgraded the stock.

Among the most notable movers, CalAmp Corp. (CAMP: chart), wireless communications equipment maker, tumbled 37% after it said Q4 profit fell sharply on higher expenses and predicted Q1 net loss, citing near term challenges with one of its products. Trump Entertainment (TRMP: chart) rose 19% after the casino and hotel operator said it received indications that would-be suitors show interest in buying the company.

In the first hour of trading, the Dow Jones industrial average rose 47.06, or 0.35%, to 13,523.78. The Standard & Poor''s 500 index rose 4.90, or 0.32%, to 1,517.65. The Nasdaq composite index rose 4.72, or 0.19%, to 2,544.10. Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.78% from 4.76% late Thursday.


[R]9:30AM The FTSE 100 gains Friday, aided by Cadbury Schweppes and oil large-caps.[/R]

The FTSE 100 was up 40.2 points to trade at 6,619.5, its highest level since September 2000.

Advancers

Cadbury Schweppes surged 3.5% on reports that two private consortiums were preparing 8 billion pounds bids for the US drinks unit of the company. Insurer Royal & Sun Alliance was another sharp advancer, up 2.1%.

A firm oil price boosted oil companies. BG Group and Royal Dutch Shell rose 2%, while BP was up 1.7%. Cairn Energy added 3.5% as Citigroup lifted its recommendation on the stock from hold to buy.

Decliners

There were few decliners. British Airways slid 3% after a disappointing set of full-year results. Operating profit fell 13% to 602 million pounds and the airline also added it was to make a provision of 350 million pounds in its full-year accounts over a fuel surcharge investigation.

Assura, a group which develops health care facilities, announced it is performing in line with expectations for the first half of the year and the property division is continuing to work towards its targets. Assure fell 2.1%.


[R]9:00AM Stock futures pointed to a higher opening.[/R]
U.S. stock futures were pointing to a rebound after Thursday''s losses, with General Electric expected to announce the sale of a subsidiary and Dow member Verizon Communications (VZ: chart) moving 1.6% higher after Citigroup upgraded its stock to buy from sell. General Electric (GE: chart) added 1% in pre-market trading on reports that it is close to a deal to sell its plastics division for nearly $11 billion to Saudi Basic Industries.

In other deal news, Microsoft Corp. (MSFT: chart) announced on Friday that it agreed to acquire online advertising firm aQuantive Inc. (AQNT: chart) for about $6 billion in cash. Shares of Aquantive shot up 77.6% in pre-market trade. CapitalSource (CSE: chart) agreed to buy Nebraska lender TierOne (TONE: chart) for $652 million in cash and stock. TierOne shares jumped nearly 32% in pre-open deals. Among other stocks attracting attention before the bell, Intuit (INTU: chart) soared 10% after the tax-preparation software maker posted 23% profit increase, lifted its earnings forecast and set an $800 million stock buyback plan.

On the economic news front, the University of Michigan is scheduled to release its preliminary index of consumer sentiment for May, which is expected to show a reading of 87.1, the same as in April. S&P 500 futures rose 4.2 points at 1,519.40 and Nasdaq 100 futures climbed 4.25 points at 1,894.50. Dow industrial futures gained 30 points.


[R]8:30AM Asian stocks decline across the board on a plunge in copper prices.[/R]

Asian markets ended mostly lower on Friday. Japanese Nikkei 225 finished down 0.6% at 17,399.58. Metal-processing and smelting firm Dowa Holdings slumped 4.7%, while Toho Zinc fell 2.6%. Nippon Steel, the world second-largest steel producer, fell 2.4%, while Credit Saison dipped 4.9%. Sumitomo Metal Mining, the largest nickel miner in Japan, lost 4.1 percent, its biggest drop since April 2.