The euro also recovered from Friday's weakness, helped by concerns economic growth and inflation in Europe might mean the region increases interest rates more quickly than the United States.
US government debt prices slipped back as investors turned to riskier assets.
Gold edged up on some safe-haven buying but it was set for its worst monthly performance since December 2009, driven down by the improving tone of some key US economic data.
European shares edged up from three-week lows, with energy and mining firms advancing as confidence over the outlook for corporate profits overshadowed worries about political unrest in Egypt.
The pan-European FTSEurofirst 300 index ended 0.1 percent higher at 1,145.06 points.
"I think it would take more than protests in Egypt to take this market down. The earnings continue to come in better-than-expected but I am looking for a correction," said Jeffrey Saut, chief investment strategist at Raymond James in St. Petersburg, Florida.
US stocks edged higher after ExxonMobil Corp., the world's largest publicly traded oil company reported a higher-than-expected 53 percent increase in quarterly profit.
The Dow Jones Industrial Average was up 52.30 points, or 0.44 percent, at 11,876.00. The Standard & Poor's 500 Index was up 9.59 points, or 0.75 percent, at 1,285.93.
The Nasdaq Composite Index was up 16.29 points, or 0.61 percent, at 2,703.18, managing to hold gains even after bellwether Intel Corp fell 1.7 percent to $21.09 after cutting its first-quarter revenue forecast by $300 million due to costs for correcting a design flaw in one of its chips.
The MSCI world equity index was up 0.18 percent while emerging stocks were down 0.58 percent, pressured by Egypt's unrest.
In currencies, the euro was supported by purchases made by Asian central banks and Middle East accounts, while nervousness surrounding the political crisis in Egypt is calming down "as far as the currency market is concerned," said Brad Bechtel, managing director of Faros Trading, managing director at FX advisory and execution firm Faros Trading in Stamford, Connecticut.
The dollar was down against a basket of currencies, with the US Dollar Index down 0.57 percent at 77.689, while the euro was up 0.69 percent at $1.3707, and some traders expecting a move toward $1.40 in the weeks ahead. Against the Japanese yen, the dollar was down 0.17 percent at 81.97.
Spot gold prices rose $1.06, or 0.1 percent, to $1335.5 an ounce. Copper, used in power and construction, hit $9,744.75 a ton, its highest since reaching a record at $9,781 a ton on Jan. 19, on short-covering ahead of a week-long Chinese holiday.
Tin hit a record high of $30,050 a tonne on worries about supplies from top exporter Indonesia.
US Treasuries, seen as a safe-haven during uncertain times, softened on better-than-expected economic data boosting confidence that the US economy is on track to recover.
The benchmark 10-year US Treasury note was down 8/32, with the yield at 3.3606 percent. The 2-year US Treasury note was down 1/32, with the yield at 0.5541 percent. The 30-year US Treasury bond was down 15/32, with the yield at 4.5651 percent.
