LONDON (TheDeal) -- European markets roared back to life on Monday, led by rallies in mining and telecom stocks across the region.
All major indices were up, with the DAX gaining 1.10% to 11,817.82 in Frankfurt, the FTSE 100 adding 0.71% to 7,044.24 in London, and the CAC 40 0.47% higher in Paris by late morning.
Mining companies including Anglo American (AAUKY) were up in London as investors welcomed monetary easing in China, the world's top commodities consumer, over the weekend.
On Sunday, China's central bank cut the amount of cash banks are required to hold as reserves, injecting much-needed liquidity into the world's second-biggest economy in an effort to fight slowing growth and encourage bank lending.
The news lifted mining stocks across the continent, including Anglo American by 2.87%, Rio Tinto (RIO) by 1.82% and Kaz Minerals (KZMYY) by 1.71% in London. In Helsinki, Finland's Outokumpu Oyj (OUTFF) 0.64% higher.
It was also merger Monday for Europe's telecom sector.
In Brussels, Telenet (TLGHF) jumped 5.3% after the company agreed to buy Royal KPN's Base mobile division for €1.325 billion in cash, or 8.9 times 2014 EBITDA and five times adjusted EBITDA before synergies and one-off investments. Conditions include a €100 million breakup fee Telenet has to pay in case the deal does not get the green light from merger control authorities.
Telenet is Belgium's largest provider of cable broadband services and is majority-owned by John Malone's Liberty Global (LBTYA). Base provides both wireless and fixed-line telecoms services as well as broadband and digital TV. The combined entity will have adjusted revenue of €2.4 billion and adjusted EBITDA of €1.1 billion.
Monday's news revived speculation about a tie-up between Liberty Global and Vodafone (VOD), whose shares were up nearly 1% in London. Telecoms were among the best performers in Europe's Stoxx 600, whose gauge of mobile telecommunications registered a 1.12% gain.
But the Belgian telecom deal was not good news for everybody. Belgian mobile provider Mobistar (MBSRY) slumped 13.6%. Analysts expect Mobistar to lose around €54 million in EBITDA beginning in 2018, after its mobile virtual network operator contract with Telenet is due to expire.
Among other decliners, Petrofac (POFCF) fell 12.43% in London after saying it expects a pretax loss this year as a result of project delays and higher costs.
Grocery retailer Tesco (TESO) was down nearly 0.5% after the Financial Times reported that it may report an annual loss of up to £5 billion ($7.5 billion) when it puts out full-year results on Wednesday.
And in Lisbon, Banco BPI (BBSPY) was down 2.04%, after revealing that it's not among the five selected bidders for the third phase of the Novo Banco auction. Final bids are due by the end of June, according to Portugal's central bank.
In Asia, the Hang Seng shed 2.02% to 27,094.93 in Hong Kong while the Nikkei was 0.09% lower at 19,634.49.