Markets close slightly higher, strong December seen

The S&P 500 headed for its best December in nearly two decades as US stocks advanced in thin trade, lifted by investor optimism about the economy in 2011.

The Dow Jones industrial average was up 10.52 points, or 0.09 percent, at 11,586.06. The Standard & Poor's 500 Index was up 1.34 points, or 0.11 percent, at 1,259.85. The Nasdaq Composite Index was up 4.05 points, or 0.15 percent, at 2,666.93.

European shares ended higher, extending a year-end rally and putting equities on track to post their biggest monthly gain in 17 months, though trading volumes remained low.

The pan-European FTSEurofirst 300 index of top shares closed 0.2 percent higher at 1,142.98 points on a volume of just 40 percent of the index's 90-day average.
Japan's Nikkei average advanced 0.5 percent as investors bought on dips amid hopes that Tokyo stocks will stay bullish entering 2011, though a stronger yen limited strong follow-through buying.

The benchmark Nikkei closed the day up 51.91 points at 10,344.54. The broader Topix index gained 0.6 percent or 5.18 points to 908.01.