European markets edge higher

German trader keeps an eye on stocks

LONDON, England (CNN) -- European markets ended mostly higher on Monday, with the tech sector holding on to initial gains, while oil stocks fell after Iraq said it would lift its export embargo.

The CAC 40 blue chip index in Paris gained 0.3 percent to 4,367.26 and Frankfurt's Xetra Dax was up 0.3 percent to 4,897.43 in late trading (the German market was set to close at 1900 GMT). London's FTSE 100, Europe's biggest market, was closed for a public holiday.

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, lost 0.2 percent, led lower by the oil and gas and information technology sub-indices. Computer and auto stocks were mostly higher.

Dutch chip equipment maker ASML slipped 0.4 percent lower after notching up solid gains for most of the session after saying it expected the semiconductor market to recover. (full story)

However, STMicroelectronics (PSTM), Europe's biggest chipmaker, rose 1.3 percent in Paris, and Philips, the third-biggest semiconductor maker, gained 1.6 percent.

France Telecom (PFTE), which hit a record low of 22.87 euros on Friday, rose 1.4 percent on Monday, while its mobile phone business Orange (PORA) added 1.2 percent.

Deutsche Telecom (FDTE), which has fallen more than a third this year, was up 1.8 percent in late trading in Frankfurt.

France's Alcatel (PCGE), the world's fifth biggest telecom equipment maker, rose 1.6 percent.

Among the losers on Monday, Europe's biggest mobile phone company Vodafone (VOD) continued to take a pounding after cutting its forecast last week for its German and Italian businesses. (full story) Vodafone shares ended 9.7 percent lower in London.

Among the telecom stocks declining with joining Vodafone was mmO2 (OOM), the UK mobile phone operator, which fell 5.3 percent. Sweden's Ericsson, the world's biggest maker of high-speed mobile networks, lost 1.7 percent and Nokia, the world's largest maker of mobile phones, fell 1.6 percent.

French software maker Dassault Systemes (PDSY), was the top decliner in Paris, falling 1.1 percent.

Oil stocks fell after Iraq said it would lift its export embargo imposed last month in protest to Israel's occupation of Palestinian territories. (full story) France's TotalFinaElf (PFP) lost 1 percent and Royal Dutch, which represents 60 percent of the world's second-biggest oil company Royal Dutch/Shell, fell 2.5 percent.

The auto sector recouped most of its losses on Monday, as German engineering union IG Metall, which includes workers at car assembly plants, began rotating strikes around the country. (full story)

In late Frankfurt trading, Porsche (FPOR3) was down 1.6 percent, DaimlerChrysler (FDCX) fell 0.5 percent and Volkswagen (FVOW) lost 0.1 percent. All three stocks were off their sessions lows.