European stocks hit their highest levels in more than six years today with ABN AMRO, which has been in merger talks with Barclays, rallying 6 per cent after it got an approach from a consortium of banks.
Philips also supported with a 4 per cent rise after the Dutch conglomerate's first-quarter operating profit beat analysts' forecasts. Swedish clothing retailer H&M gained 2 per cent on robust sales in March.
By 1055 GMT, the pan-European FTSEurofirst 300 index was up 0.7 percent at 1,565.0 - its strongest level since mid-December 2000 - and recovering from a global equities sell-off in late February and early March.
The index is now up 5.5 per cent so far this year, adding to last year's M&A-driven 16 percent jump.
Andrea Williams, head of European equities at Royal London Asset Management said markets were supported by robust economic data and a relentless stream of mergers and acqusitions.
"The economic data in Europe has been better than expected and the US is also holding its own, so people are not having to downgrade expectations," she said.
US March retail sales were due at 1230 GMT. US stock index futures indicated a stronger opening. MSCI's main world stocks index rose 0.6 per cent to a life high of 387.8 points.
The DJ Stoxx banking sector index topped European gainers with a 1.5 per cent rally.
At 13.45, the ISEQ was at 9677.75, an increse of 76.88.