European shares inched higher in early trading on Monday, as mergers and acquisitions fever helped the market extend the previous session's sharp rally, Reuters reported. At 0848 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,388.15 points. The index surged 2.1 percent on Friday, a sharp rally sparked by dovish comments from European Central Bank President Mario Draghi and a surprise interest rate cut in China. Around Europe, UK's FTSE 100 index was down 0.04 percent, Germany's DAX index up 0.2 percent, and France's CAC 40 up 0.6 percent. The euro zone's blue-chip Euro STOXX 50 index was up 0.7 percent. The FTSEurofirst 300 index of top European shares has surged 14 percent since a low hit in mid-October, lifted by expectations of further measures by the ECB to support the euro zone economy, as well as by a recent raft of M&A deals.