Shares in Luxottica (>> Luxottica Group SpA) and Essilor (>> ESSILOR INTL.) both rallied more than 10 after agreeing on a 46-billion euro merger deal to create a global powerhouse in the eyewear industry. Luxottica hit a one-year high, while Essilor surged to its highest since the end of September.

By 0816 GMT the pan European STOXX index <.STOXX> was down 1.3 percent, while the FTSE added 0.1 percent, with a stronger mining sector helping it touch a fresh record high.

In the banking sector, the Italian banking index <.FTIT8300> underperformed with a fall of 1.5 percent after rating agency DBRS cut Italy's credit rating on Friday in a move which could raise their borrowing costs.

(Reporting by Danilo Masoni, editing by Kit Rees)

Stocks treated in this article : ESSILOR INTL., Luxottica Group SpA