FXstreet.com (Barcelona) - European stock markets have opened the week on strong pace, as Krafts Foods' offer to Cardbury triggered rallies in food an beverages sector. Euro and Pound have extended Friday's rally.

Eurostoxx 50 Index advances 1.31%, while German DAX Index rises 1.45%, and French CAC Index trades 1.22% above its opening level. In the UK, the FTSE adds 1.30%.

Cardburu rose 38% following Kraft Foods' GBP 10.2 billion offer which has been refused by Cardbury, although the food beverages companies have appreciated on the back of a market sentiment that merger activity could return to food companies.

Euro and Pound have ticked up further

EUR/USD rebound on 1.4190 on Friday has extended on Monday European session to 1.4360 high, and the Euro has eased afterwards to levels around 1.4340 at the time of writing.

GBP/USD has dropped on Asian session to 1.6365 low to bounce during European session to reach 1.6445 2-week high, before easing to levels around 1.6425 at the time of writing.

USD/JPY has extended its recovery from 91.95 low on Sept 2, as the pair has returned to levels above 93.00, reaching a day high at 93.30 ahead of the European opening, to ease afterwards to levels around 93.10.

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