European stocks mostly gain before US results

European equities mostly rose Monday on higher gold prices and a largely upbeat session in Asia, but gains were tempered by investor caution before more US earnings, dealers said. The Tokyo stock market was meanwhile lifted by a parliamentary election win for Prime Minister Shinzo Abe's ruling party. In late morning European deals, the Paris CAC 40 index of top companies increased 0.15 percent to 3,931.27 points and Frankfurt's DAX 30 added 0.03 percent to 8,333.99 points. On the downside, London's FTSE 100 slid 0.21 percent to 6,616.69 points. In Asian deals, gold prices rebounded to a one-month high at $1,323.23 an ounce, propelled by speculative buying. That compared with $1,295.75 late on Friday on the London Bullion Market. The news boosted the gold miners. Precious metals group Fresnillo topped London's FTSE 100 index, gaining 3.30 percent to 1,063 pence and Randgold rallied 2.64 percent to 4,644.35 pence. "A sharp rally in gold prices ... provides European share markets, particularly precious metal stocks, with a degree of support," said trader Ishaq Siddiqi at trading firm ETX Capital. "With little on economic data agenda today, other than US housing data later on, markets are waiting for more US earnings to act as a catalyst for direction," he added. Results are due Monday from American fast food giant McDonald's and oil services firm Halliburton. Other major companies reporting this week include Amazon, Apple, Boeing, General Motors and Caterpillar. Asian equities rose on Monday after a mixed lead from Wall Street, but Tokyo was dominated by Abe's election win. The Japanese stock market added 0.47 percent, Sydney gained 0.60 percent and Seoul won 0.48 percent. In addition, Hong Kong climbed 0.25 percent and Shanghai rose 0.61 percent, while Bangkok was closed for a public holiday. Japan's key Nikkei index had rallied more than one percent in the first few minutes of the day before settling back following Sunday's upper house election victory for the Liberal Democratic Party that will likely usher in a period of stability for Japan. "A strong victory for the Liberal Democratic Party in Japan has put markets on the front foot," said analyst Chris Beauchamp at traders IG. "Sentiment has been buoyed by the hope that the result will embolden Prime Minister Abe to go yet further in his quest to put the fire back into the Japanese economy." In foreign exchange market activity on Monday, the European single currency firmed to $1.3162 from $1.3139 late in New York on Friday. The dollar slipped to 100.04 yen compared to 100.35, while sterling edged up to $1.5288 from $1.5258. Wall Street had finished mixed on Friday as weak corporate results from tech firms offset a strong showing for industrials.