European stock markets strike mixed note

London: Europe`s stock markets diverged on Monday in mixed trading, ahead of a busy week for economic news, dealers said.

London`s benchmark FTSE 100 index rose 0.11 percent to stand at 6,799.07 points in late morning deals in the capital.

In Paris, the CAC 40 gained 0.33 percent to 4,345.47 points, while Frankfurt`s DAX 30 index fell 0.11 percent to 9,633.72 compared with Friday`s close.

Before the weekend, European equities sank as sentiment was soured by falling German business confidence.

"Markets (are) paring back some of their losses from Friday," said Rebecca O`Keeffe, head of investment at online stockbroker Interactive Investor.

"Whilst likely to be quite quiet today, with a raft of corporate and economic news due later this week, including the Fed meeting, US GDP and US employment numbers as well as a range of earnings results including European banks and oil companies, there is plenty to move the market and volatility is likely to increase."

Dealers will focus on Friday`s July non-farm payroll figures out of Washington.

With last month`s report coming in well above forecasts there are hopes for another strong set of figures as the US economy picks up strength.

In corporate news on Monday, Reckitt Benckiser jumped to the top of the FTSE risers` board, after the British household goods company unveiled plans to spin off its pharmaceuticals division.

The group will float the unit, RB Pharmaceuticals, on the London stock market later this year, it said in a statement which also revealed that first-half net profits jumped by almost a quarter.

Reckitt`s share price gained 2.96 percent to 5,220 pence in late morning deals.

In foreign exchange activity on Monday, the European single currency firmed to USD1.3437 from USD1.3430.

The euro rose to 79.14 British pence from 79.10 on Friday. The pound increased to USD1.6980 from USD1.6973.

The price of gold advanced to USD1,304.22 an ounce on the London Bullion Market from USD1,294.75 on Friday.

Asian stocks mostly rose on Monday as investors await the release of key US data at the end of the week, while Shanghai and Hong Kong surged after China approved three private banks as part of an economic reform drive.

Tokyo rose 0.46 percent to 15,529.40 points -- its highest close since January -- and Seoul rose 0.74 percent, while Sydney dipped 0.11 percent.

Elsewhere, Shanghai rallied 2.41 percent and Hong Kong added 0.88 percent.

Jakarta, Singapore and Kuala Lumpur were closed for public holidays.