Investors have taken Germany's election deadlock in their stride after the FTSE 100 index and other European markets opened higher.
A weekend without major developments on the Evergrande debt crisis helped the mood, while oil prices have continued to rise amid global supply fears. Brent crude was trading at close to $79 a barrel, helping shares in BP and Royal Dutch Shell to rally 2%.
Rolls-Royce rose 4% — continuing a recent rebound — as the UK company unveiled a major deal to power US Air Force B-52 bombers.
The pound, meanwhile, has held firm against the US dollar despite the sight of many petrol pumps running dry as panic buying took hold.
