* FTSEurofirst 300 ends up 0.8 percent
* M&A activity boosts stocks on both sides of Atlantic
* Debt-ridden peripheral euro zone countries monitored
By Brian Gorman
LONDON, Nov 15 (Reuters) - European shares closed higher on Monday as data that reassured on the prospects of economic recovery proved a stronger theme than euro zone debt worries, and with the auto sector among those driven up by M&A activity.
The FTSEurofirst 300 <.FTEU3> index of top European shares rose 0.8 percent to close at 1,112.30 points after falling for three sessions. The index fell 0.7 percent last week, but is up more than 72 percent from its record low in March 2009.
"I'm not surprised the market has gone up. There's a recovery going on in the United States, and in Europe, though it's in some countries there more than others," Dean Tenerelli, fund manager at T Rowe Price in London, said.
"It's been a very good earnings season. Profitability is good. The European market is trading at 10 or 11 times earnings. It's ridiculously low. Forget where we've come from. Look at the valuations."
Sales at U.S. retailers rose more than expected in October to post their largest gain in seven months, further evidence the economy was regaining strength after a soft patch in the summer.
But Monday's upbeat report from the Commerce Department was tempered by a manufacturing gauge in New York state which this month fell to its lowest since April 2009. [ID:nN15239736]
European autos were higher on consolidation moves.
German truck maker MAN SE
AXA
Miners rose, led by BHP Billiton
Lonmin
Other risers in the sector included Kazakhmys
BAYER BOOST
Bayer
Invensys
Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX <.GDAXI> and France's CAC40 <.FCHI> ended the day between 0.4 and 0.9 percent higher.
The euro zone had a bigger-than-expected trade surplus in September as export growth outpaced the year-on-year rise in imports. [ID:nBRLFME68C]
Concerns about debt in peripheral euro zone countries eased after the Irish Independent newspaper said Ireland was considering asking for money for its banks from the EU emergency fund, to fend off the threat of a bailout for the state.
But investors kept a close eye on developments in peripheral euro zone countries, which have seen a spike in borrowing costs over the past weeks that raised new concerns about their ability to cut swollen deficits and debt without financial aid.
Dublin has not applied for EU debt assistance, but has not ruled out such a move.
Spain's IBEX <.IBEX> rose 1.2 percent and Ireland's ISEQ <.ISEQ> gained 0.8 percent.
On Wall Street, the Dow Jones <.DJI>, S&P 500 <.SPX> and Nasdaq Composite <.IXIC> were up between 0.1 and 0.4 percent around the time European bourses were closing.
As well as retail sales, U.S. stocks were boosted by M&A.
Caterpillar Inc
(Editing by David Hulmes)