LONDON (Dow Jones) - European stocks edged higher on Monday, as oil prices below $60 a barrel and gains from drugmaker Schering gave a boost to markets.

Frankfurt's DAX Xetra 30 index added 0.2% at 4,850, France's CAC-40 index edged 0.1% higher at 4,849 and London's FTSE 100 index notched up 0.1% at 5,146.

The pan-European Dow Jones Stoxx 600 added 0.2% at 283.82, as crude oil prices continued to hover below $60 a barrel.

The oil-sensitive chemicals sector performed well in early trade and resource stocks such as Arcelor also gained after Goldman Sachs raised its view on both the company and the European steel sector.

However, a mixed end to trading in U.S. markets on Friday capped gains, with investors still unable to shake off inflation and interest-rate fears.

In stocks news, German drugmaker Schering AG (SHR) climbed 1.8% after the company revealed a higher than expected rise in third-quarter net profit and sales and also increased its profitability goal for 2005.

Net profit rose 29% to 160 million euros, while net sales rose 10% to 1.355 billion euros and Schering also said it now expects to product an operating margin of more than 17% for 2005.

Deal talk centered on Spain's Banco Santander Central Hispano SA and Britain's Marconi.

Banco Santander (STD) shares edged up 0.4% on a report it is in advanced negotiations to take a stake in Philadelphia's Sovereign Bancorp Inc. (SOV)

If the deal goes through, Sovereign is expected to use the proceeds of the Santander investment to buy Independence Community Bank Corp, a New York City- area bank with a market capitalization of $2.71 billion, The Wall Street Journal reported in its online edition, citing people familiar with the matter.

And U.K. telecom equipment maker Marconi rose 1.5% after The Sunday Telegraph reported that Ericsson (ERICY) and Alcatel (ALA) are in a neck-and-neck race to buy the company. Alcatel edged 0.7% lower while Ericsson was steady.

(END) Dow Jones Newswires

10-24-05 0700ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.