European stocks were on the rise Monday after sharp losses last week, as investors bought shares in mining firms and also snapped up shares in possible acquisition targets, including U.K. gas company Centrica.
The pan-European Dow Jones Stoxx 600 indexadded 0.8% to stand at 388.13 as investors attempted to recoup some of last week's losses by buying resource shares, auto firms and industrial stocks.
Miners led the gains, with Rio Tinto (RTP) shares up 1.3% and Vedanta Resourcesposting gains of 1.6% as gold prices broke a five-session losing streak.
The previous week, investors in Europe and around the world fretted about global interest-rate levels, sparking a sell-off in both equity and bond markets. The Stoxx 600 index lost about 4% in the week.
Around the region on Monday, the German DAX Xetra 30 indexgained 1.1% at 7, 478.90, the French CAC-40 indexrose 0.8% at 5,930.82 and the U.K.'s FTSE 100 indexadvanced 0.6% at 6,548.80.
Strategists at J.P. Morgan and Lehman Brothers also gave equity investors some reassurance on Monday, sticking with their prior recommendations for global stock markets.
J.P. Morgan's Abhijit Chakrabortti said that he believes that the highest amount of risk lies with interest-rate levels rather than economic growth, meaning that he won't be selling equities to buy bonds.
Chakrabortti said that he remains neutral on equities due to a lack of traditional bear-market signals -- significant overvaluation and/or sustained high inflation.
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