London — European shares rose on Monday as investors snapped up carmaker stocks following confirmation of merger talks between Fiat Chrysler and Renault, and after European parliamentary elections saw pro-Europe parties cling to a majority. The gains followed a stronger showing in Asian markets, where shares rose but remained near four-month lows. The MSCI world equity index, which tracks shares in 47 countries, was ahead by 0.1%. The pan-European STOXX 600 added 0.4% with all major European indices in the black, although trading volumes were thin with markets in the US and UK closed for market holidays. Car stocks climbed 1.8% as Italian-American carmaker Fiat Chrysler confirmed it had made a “transformative merger” proposal to French peer Renault in a deal which would create the world’s third-biggest carmaker. Shares of both companies rallied. Markets were also buoyed as pro-European parties retained a firm grip on the EU parliament, provisional results from the bloc’s elections s...

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