Stocks in Europe witnessed a climb on account of speculation that mergers and acquisitions are to rebound this year as the global economic recovery fetches momentum.

The euro hit a four-month low against a broadly firmer pound on Monday, under pressure in subdued trade with U. S. markets closed for a holiday.

Against the pound, the euro squeezed 0.6% at 87.82 pence, reporting its lowest since mid-September. Even sterling hit a one-month high against the dollar at $1.6380.

Sterling gained firmness as speculative players chased it higher on reports that French utility GDF Suez was seeking a conglomeration with Britain's International Power while platinum climbed 1.4% to $1,622.50 an ounce after earlier trading since August 2008.

The Dow Jones Stoxx 600 Index rebounded from its first weekly loss in a month to rise 0.7 percent as of 11:32 a. m. in London.

Greek stocks lowered touching the benchmark ASE Index sliding 1.9 percent, the biggest drop among world stock indexes.

Swiss National Bank head Philipp Hildebrand was quoted as saying on Sunday that the central bank would act resolutely to prevent an excessive appreciation of the franc to ward off the danger of deflation.

In addition, crude oil for February delivery rose 51 cents to $78.51 a barrel in electronic trading on the New York Mercantile Exchange.