* Global M&A activity eases recovery concerns
* Bonds fall on profit taking, euro weakens further
* Wall Street opens higher but trims gains
(Updates with U.S. markets open)
By Walter Brandimarte and Natsuko Waki
NEW YORK/LONDON, Aug 23 (Reuters) - World stocks rebounded
from a one-month low on Monday as a slew of corporate takeover
activity supported investor sentiment and boosted the price of
oil.
The dollar was stable against a basket of major currencies
but the euro weakened further, hurt by persistent concerns over
the euro zone economy.
Investors sold some U.S. Treasury debt, pulling benchmark
yields up from recent 17-month lows, to take profits and make
room for this week's $109 billion slate of bond auctions.
Market sentiment improved as several merger and acquisition
deals were announced in a sign companies are making use of high
cash balances and historically low borrowing costs to look for
bargains and expand their business.
Among the deals, Hewlett-Packard Co <HPQ.N> offered $24 a
share in cash for data storage company 3PAR Inc<PAR.N>. The
$1.6 billion offer tops a competing bid by technology rival
Dell Inc<DELL.O>. For details, see [].
Campbell Soup Co <CPB.N> may make a $2.3 billion break-up
bid for Britain's United Biscuits, which is owned by private
equity firms PAI Partners and Blackstone Group LP <BX.N>,
according to a report in the London-based Sunday Times.
[]
HSBC is also in talks to buy a stake in South Africa's
Nedbank in a potential $6.8 billion deal. In Asia, an estimated
$58 billion worth of M&A was playing out Monday.
"The whole market is geared to M&A activity," said David
Buik, senior partner at BCG Partners. "We're of the opinion
that the quality of economic data across the world is poor, but
on the other side of the coin there is enough M&A activity out
there to limit any kind of a fall in the immediate future."
Thomson Reuters data showed global mergers and acquisitions
have hit nearly $200 billion so far in August.
The three main U.S. stock indexes opened higher, but
trimmed gains later, with the Nasdaq turning negative.
The Dow Jones industrial<> average was trading up 25.65
points, or 0.25 percent, at 10,239.27, while The Standard &
Poor's 500 Index<.SPX> rose 3.34 points, or 0.31 percent, to
1,075.03. The Nasdaq Composite Index<> was down 1.78
points, or 0.08 percent, at 2,177.98.
The MSCI All-Country World equity index <.MIWD00000PUS>rose
0.44 percent while the FTSEurofirst 300 index <> of top
European shares jumped 0.99 percent after three consecutive
session of losses.
Mining shares gained as financial markets bet Australia's
inconclusive weekend elections would lead to a change of
government, spelling the end to a plan to impose tax on major
iron ore and coal mines.
The STOXX Europe basic resources index <.SXPP> rose 1.7
percent, while BHP Billiton <BLT.L>, Anglo American<AAL.L>,
Antofagasta<ANTO.L> and Rio Tinto<RIO.L> were up 1.6 to 2.2
percent.
Foster Group closed up more than 7 percent after sources
told Reuters beverage groups SABMiller and Asahi Breweries were
looking at the Australian brewer's beer operations, valued at
more than $10 billion.
EURO WEAKENS
Even as the dollar was little changed against a basket of
major currencies measured by the U.S. Dollar Index, the euro
was down 0.15 percent against the greenback, at $1.2686.
The single European currency was hurt by concerns about the
euro zone economy and prospects of loose monetary policy for an
extended period.
The number of investors betting against the euro has
increased, data from the Commodity Futures Trading Commission
showed. []
=Data from UBS AG also showed a drop in net investment
flows into the euro zone for a third consecutive week.
"August's deceleration in activity (in Europe) has dented
some of the euro bulls' arguments about economic outperformance
vis-a-vis the United States and as such put a cap on any euro
rally for now," said Boris Schlossberg, director for currency
research at GFT in New York.
The Australian dollar reversed losses after being dented by
political uncertainty from an inconclusive general election.
The currency fell earlier after neither major party in
Australia won an overall majority in Saturday's election.
[]
The Aussie traded as low as $0.8864 <AUD=> but it recouped
losses to trade at $0.8961, helped by buying from real-money
accounts.
U.S. Treasuries prices gave back part of a recent rally.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was down
4/32 in price, with the yield at 2.6303 percent. The 30-year
U.S. Treasury bond <US30YT=RR> lost 20/32 in price, with the
yield at 3.6956 percent.
(Additional reporting by Leah Schnurr, Burton Frierson and
Vivianne Rodrigues; Editing by Andrew Hay)
