MILAN/FRANKFURT: European shares rose on Monday, led by economically sensitive cyclical sectors, as sentiment was lifted by hopes of a quicker recovery and multi-billion dollar deals in the region.
The pan-European STOXX 600 index rose 0.4%, adding to gains of 3.5% in the previous session, with technology shares rising 0.9%.
Cyclical sectors including basic resources, banks and chemicals rose between 1% and 1.7%, and were among top gainers on the main index.
Dialog Semiconductor surged 16.2% to the top of the STOXX 600 after Japanese chipmaker Renesas Electronics Corp agreed to buy the Frankfurt-listed chip designer for 4.9 billion euros ($5.89 billion) in cash.
France’s Veolia Environnement SA said it is launching an offer for all of waste and water management company Suez SA, valuing it 11.3 billion euros ($13.59 billion) after dropping efforts to win the backing of the Suez board.
The French firms fell about 1% each.
Frankfurt shares rose 0.3%, after hitting a record high moments after the open. Data showed German industrial output stagnated in December as lockdowns to contain the COVID-19 pandemic held back the export-oriented manufacturing sector in Europe’s largest economy.
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