Wall Street gains as investors await Fed meeting

US stocks climbed on Monday amid light trading on speculation that the Federal Reserve would signal potential steps to boost the sluggish economic recovery when it meets on Tuesday.

Volume was a mere 5.71 billion shares compared to last year's estimated daily volume of 9.65 billion shares, as investors were hesitant of taking new positions before the Fed's statement.

At the close, the Dow Jones industrial average was up 45 points, or 0.42%, at 10,699. The broader Standard & Poor’s 500 stock index rose six points, or 0.55%, to 1,128, the highest level in more than two months. The Nasdaq gained 17 points, or 0.75%, to 2,306.

Shares of telecommunications companies, consumer goods makers, financials and industrials helped the indexes climb higher. McDonald’s Corp gained 1.6% after beating sales estimates. Ebay rose 2.5% after former unit Skype SA filed for an initial public offering. Homebuilders surged after Deutsche Bank said the housing market decline is almost over.

Hewlett-Packard declined 8% after the resignation of its chief executive Mark Hurd.

In Europe, markets were up after a report of strong export growth in Germany. The FTSE 100 in London and the DAX in Frankfurt rose about 1.5%, while the CAC 40 in Paris was 61 points, or 1.65%, higher. The benchmark Stoxx 600 rose 1.4%.

In Asia, most shares gained ground amid speculation that the Fed would unveil further measures to stimulate the US economy.

The BSE Sensex index rose 0.8% to 18,287, its highest close since February 2008. The Hang Seng index climbed 0.6% to 21,801, its highest level since 16 April, as property stocks gained on optimism about local land sales. The Shanghai Composite Index moved up 0.5% to 2,672 as investors awaited a batch of economic reports due later this week. The Nikkei 225 Average fell 0.7% to 9,572 after leading exporters suffered from the stubbornly strong yen.

In addition to the Fed's decision, Tuesday’s rate meeting for the Bank of Japan will be closely watched. Investors are also anticipating a cautious message when the Bank of England releases its inflation report on Wednesday.