European markets recouped most of last week's losses as Finland's Nokia and Germany's Siemens agreed to combine their phone equipment units.
The FTSE Eurofirst 300 rose 1.1 per cent to 1,273.68, with the Xetra Dax in Frankfurt up 1.6 per cent to 5,461.88, the CAC-40 in Paris up 4,750.17 and the FTSE 100 in London 0.9 per cent ahead at 5,645.7.
The Eurofirst 300 lost 1.2 per cent last week.
Nokia Siemens Networks, which combines Nokia's Networks unit and Siemens' carrier-related operations, would bring annual cost savings of €1.5 billion by 2010.
The 50-50 joint venture will be headquartered in Finland and will be number three in telecoms infrastructure to Ericsson and Alcatel/Lucent, who agreed to merge in April.
Nokia rose 4.1 per cent to €16.29, and Siemens gained 8.8 per cent to €68.35, while Alcatel added 3.1 per cent to €9.97, and Ericsson rose 1.8 per cent to €22.90.
Financial Times Service