AFP - Europe's main stock markets edged higher on Monday as nervous investors assessed the outlook for the global economy ahead of crucial US growth data later this week.

London's FTSE 100 index of top shares added 0.12 percent to 5,248.28 points in late morning trade.

Elsewhere, Frankfurt's DAX 30 rose 0.32 percent to 5,758.26 points and the Paris CAC 40 climbed 0.18 percent to 3,815.17 points near the half-way mark.

The DJ Euro Stoxx 50 index of top eurozone shares advanced 0.16 percent to 2,890.60 points.

In foreign exchange trade, the euro hit fresh 14-month highs at 1.5064 dollars in Asian trading on signs that China may increase its holdings of the European currency, dealers said.

The Tokyo stock market ended 0.77 percent higher on Monday as a weaker yen boosted exporters and strong South Korean growth figures raised optimism about Asia's economic outlook, dealers said.

"As we enter another week, we are getting as many questions as answers (about) the health of the global economy," ODL Securities' John Murphy said.

"Whilst corporate results are looking pretty good in terms of headline figures, one can't escape from the underlying feeling of nervousness."

In addition, German consumer sentiment has fallen for the first time since September 2008 owing to rising petrol (gasoline) prices and forecasts for higher unemployment, the GfK economic research institute said on Monday.

GfK's consumer index, the result of a survey of around 2,000 individuals, "has experienced a light decline in autumn," the institute said, slipping to 4.0 points in October from 4.2 points in September.

"The outcome is certainly disappointing, given the latest improvements in a number of economic data," said Barclays Capital analyst Thorsten Polleit.

In Stockholm, Swedish appliance maker Electrolux reported better-than-expected quarterly results and the planned closure of two US factories, sparking a jump in the company share price.

The company pledged to carry out further restructuring, cheering investors on the Stockholm exchange where Electrolux shares were showing a gain of 7.15 percent to 176.80 kronor in an overall weaker market.

Later this week, on Thursday, investors will focus on crucial third-quarter gross domestic product (GDP) data for the United States, the world's biggest economy.

"The US third-quarter GDP data is the main macro news of this week and should confirm a return to growth by the world's largest economy, although that will lean heavily on special factors, notably the 'cash for clunkers' (auto purchase) programme," said Altium Securities analyst Ian Williams.

The US economy is expected to have grown between 3.0 and 4.0 percent in the third quarter after four quarters of contraction, according to consensus forecasts for the July-September period.

On Friday, Wall Street slumped by 1.08 percent as the market consolidated at the end of a busy week for company earnings.

But the London stock market saw slender gains, despite news that the British economy failed to shake off recession in the third quarter.

Britain remains mired in its longest recession since 1955, official data showed on Friday, confounding expectations for a return to growth in the three months to September.