Stock exchanges in Paris and Frankfurt edged higher on Monday in featureless trading in the absence of activity in London and New York, where markets were closed for holidays.

In Paris the Cac 40 added 0.8 percent to close at 4937.84 points while in Frankfurt the Dax rose 0.14 percent to 6953.84.

On the Paris exchange gas utility Gaz de France was among the day's big winners, gaining 2.08 percent to finish at 41.79 euros on an announcement that it was negotiating with Electricite de France to sell it GDF's 50 percent stake in Segebel, which controls the Belgian electricity group SPE.

The deal would meet European Commission requirements regarding GDF's planned merger with the private French power company Suez.

Suez shares rose 1.46 percent to 45.03 euros.

Air France-KLM fell 0.60 percent to finish at 16.56 euros in the face of higher fuel prices.

France Telecom added 1.59 percent to reach 20.42 euros on prospects for consolidation in the telecommunications sector, which have been boosted by reports of discussions between Reliance of India and South Africa's MTN.

In Frankfurt energy giant EON rose 1.28 percent to 132.53 euros after revealing it planned to increase its gas prices in the next several months.

Elsewhere in the sector RWE gained 0.49 percent to end the session at 79.56 euros.

Hypo Real Estate rose 1.98 percent to 21.60 euros, powered by its announcement Friday that investment fund JC Flowers wants to acquire a quarter of the company for €1.1-billion.

Deutsche Telekom added 0.93 percent to close at 10.86 euros despite an acknowledgement over the weekend that it had hired an outside firm to track hundreds of thousands of phone calls by senior executives and journalists to identify the sources of press leaks.

Elsewhere in Europe on Monday there were declines of 0.09 percent to 3668.52 on the Bel-20 in Brussels, 0.02 percent to 478.29 on the AEX in Amsterdam, 0.32 percent to 32 764 on the SP/Mib in Milan and 1.29 percent to 7363.9 on the Swiss Market Index.

The Ibex-35 in Madrid gained 0.04 percent to close at 13 583.7.

"Oil prices fanned fears"

Earlier in the day Asian shares tumbled as soaring oil prices fanned fears that inflation would slow economic growth, with Chinese stocks sliding over three percent after another earthquake unsettled investors.

The Shanghai bourse fell 3.13 percent after a strong aftershock in southwest China following 12 May's devastating Sichuan earthquake. Sunday's aftershock toppled 70 000 houses and killed at least six people.

Japanese shares closed down 2.3 percent as investors took their cue from a US slide of about one percent on Friday, as concerns grew that high oil costs would hit consumer spending and cut corporate profit growth.

Hong Kong shed nearly 2.4 percent, India slipped a little over 1.8 percent, Taiwan ended almost 1.5 percent lower, South Korea slid 1.5 percent and Australia closed down more than one percent.

AFP