FTEU3 index of leading Europeanshares rose 3

Shares of Pfizer (PFE.N), the world's largest drugmaker,fell 10.3 percent after said it agreed to acquire Wyeth WYE.Nfor $68 billion Wyeth shares fell 0.8 percent. The share priceof acquirers in takeovers often fall on cost concerns. The Dow Jones industrial average .DJI closed up 38.47points, or 0.48 percent, at 8,116.03. The Standard & Poor's 500Index .SPX rose 4.62 points, or 0.56 percent, at 836.57. TheNasdaq Composite Index .IXIC gained 12.17 points, or 0.82percent, at 1,489.46 U.S. stocks briefly turned negative in the afternoon on thegrim jobs outlook.

A Group of 20 official told Reuters theInternational Monetary Fund will slash its 2009 world growthforecast to 0.5 percent from 2.2 percent. But investors liked the possibility of more deals ahead ascompanies seek to position themselves defensively in the midstof faltering global economies. "Any kind of M&A is a positive and is seen as marking thebeginning of the light at the end of the tunnel," said AlanLancz, president of Alan B. Barclays helped arecovery in other battered European financial stocks. The FTSEurofirst 300 .FTEU3 index of leading Europeanshares rose 3.2 percent at 784.66 points The index had fallenin 12 of the previous 13 sessions. Worries about a deepening global slowdown and ongoingturmoil in the financial sector have proven enormous hurdlesfor investors to overcome in January, a month that often setsthe tone for the rest of the year Sales of previously owned U.S. homes rebounded unexpectedlyin December, rising 6.5 percent, closing out a bleak year inwhich prices dropped a record 15.3 percent, the NationalAssociation of Realtors said.

Gold climbed to its highest level in more than three monthsas interest in bullion as a haven from risk and a weaker dollaragainst the euro spurred buying U.S. gold futures for February delivery GCG9 settled up$13 at $908.80 an ounce in New York. "Gold is rising on the fallout from the renewed bankingcrisis," said VM Group analyst Matthew Turner. "The bankingcrisis is bad for share prices, and creates fear and panic.Some investors are thinking gold is the safest option." Robert Lutts, president and chief investment officer ofCabot Money Management, said he expected gold could rise to$2,000 an ounce over time as investors sought to protect theirassets.

"The central banks are printing trillions of dollars worthof currencies, and there is no real asset behind it. So, everydollar in my pocket is going to be worth less and less everyday," said Lutts, who oversees $400 million of client assets. The decline in crude oil was tempered by evidence theOrganization of Petroleum Exporting Countries was complyingwith the bulk of its output cut agreements U.S. crude CLc1 fell 74 cents to settle at $45.73 abarrel, after rising to a session high of $48.59 London BrentLCOc1 dipped $1.41, to $46.96 a barrel. The dollar fell against a basket of major currencies, withthe U.S.