LONDON, Nov 15 (Reuters) - European shares closed higher on Monday as data reassured on economic recovery, overshadowing euro zone debt worries, and with the auto sector among those gaining on M&A activity.
The FTSEurofirst 300 index of top European shares rose 0.7 percent to a provisional close of 1,111.62 points after falling for three straight sessions. The index fell 0.7 percent last week, but is up more than 72 percent from its lifetime low of 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," said Dean Tenerelli, fund manager at T Rowe Price in London.
"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 hitting a soft patch in the summer.
Autos were higher on consolidation moves. German truck maker MAN SE and Sweden's Scania are in talks over a possible merger, Scania said, in a move which could see Volkswagen take full control of both. MAN, Scania and Volkswagen rose 6, 1.4 and 2.6 percent respectively. (Reporting by Brian Gorman)