Global Shares Climb Despite Oil Jumping

Reuters

European shares gained on Monday after investor confidence rose on signs the situation at Japan's nuclear plant was improving, while Deutsche Telekom jumped on merger and acquisition news.

However, gains could come under pressure, with Brent crude rising more than 2 percent after Western warplanes bombed Libya, prompting renewed worries about the impact of higher inflation on the global economy.

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By 8:02 a.m. British time, the pan-European FTSEurofirst 300 index of top shares was up 1.3 percent at 1,102.80 points after edging higher on Friday.

"The situation in Japan does not look as dire as expected and the market likes the news about Deutsche Telekom," David Buik, senior partner at BGC Partners, said.

"Providing the situation in Libya does not get out of hand, investors should refocus back on equities and stocks should rally given how far they pulled back last week."

Telecoms featured among the best performers given a boost by merger and acquisition news. Deutsche Telekom AG's jumped 16 percent after AT&T Inc said it planned to buy its T-Mobile USA business.

(Reporting by Joanne Frearson)