Stock index futures pointed to modest gains for Wall Street on Monday, with futures for the S&P 500, Dow Jones Industrials and Nasdaq indexes all up by around 0.1 percent by 0933 GMT (4:33 a.m. EDT).

Trading was expected to be subdued, however, ahead of year-end holidays and following strong gains earlier this month.

The S&P 500 <.SPX> held on to a two-year high on Friday, having rallied over 5 percent so far in December.

Some nerves were rattled by possible escalating tensions in the Korean peninsula after South Korea held live firing drills in a disputed area despite threats of war from Pyongyang.

Investors are expected to focus on fourth-quarter financial results from Adobe , with analysts expecting the software firm to post earnings per share (EPS) of $0.52, compared to $0.39 a year ago.

In company news, Chevron said on Monday it had suspended production from an oil pipeline in Nigeria's Delta state, which was breached on Friday.

Genzyme Corp , which is fighting against an $18.5 billion bid from Sanofi-Aventis SA , will on Monday take another stab at persuading investors that its experimental multiple sclerosis drug is worth more than Sanofi's projections.

Food and beverage company Sara Lee Corp has been in talks to sell itself to Brazilian meat producer JBS , but the pair are at odds over price and it is unclear if a deal can be reached, a source familiar with the situation said on Sunday.

Google Inc has asked some manufacturers to delay the launch of TV sets based on the internet company's software, the Wall Street Journal said, citing people briefed on the company's plans.

Web commerce company eBay Inc said it is to buy brands4friends, Germany's largest online shopping club, for about $200 million (150 million euros) to strengthen its position in Europe.

On the macroeconomic front, the Obama administration will be better positioned to fight the extension of tax cuts for the wealthiest Americans when they are set to expire in two years, U.S. Vice President Joe Biden said on Sunday.

In European equity markets, the FTSEurofirst 300 <.FTEU3> rose 0.4 percent in early trade, with energy shares supported by firmer crude prices as the cold weather in Europe and parts of the U.S. boosted demand expectations for heating fuel. <.EU>

The European Central Bank (ECB) expressed serious concerns that Ireland's bailout package could affect the institution's liquidity operations in the euro zone, while the central bank's president Jean-Claude Trichet said Dublin needed to stick rigorously to the rescue plan.

(Reporting by Harpreet Bhal; Editing by Greg Mahlich)