European shares rise as Dialog Semi lifts technology stocks

European shares rose on Monday, after their best weekly gain in nearly three months, as Dialog Semiconductor boosted technology stocks, while hopes remained of a quicker economic recovery against the backdrop of vaccine roll-outs globally. Renesas Electronics Corp and Dialog Semiconductor said they had agreed for the Japanese chipmaker to buy the Frankfurt-listed chip designer for 4.9 billion euros ($5.90 billion) in cash.

European shares rose on Monday, after their best weekly gain in nearly three months, as Dialog Semiconductor boosted technology stocks, while hopes remained of a quicker economic recovery against the backdrop of vaccine roll-outs globally.

Renesas Electronics Corp and Dialog Semiconductor said they had agreed for the Japanese chipmaker to buy the Frankfurt-listed chip designer for 4.9 billion euros ($5.90 billion) in cash. The pan-European STOXX 600 index rose 0.4%, adding to previous week's gains of 3.5%, with technology shares rising 1.3%.

Frankfurt shares rose 0.6%, outperforming European peers in early trading. Most European sector indexes were higher moments after the open.

Global markets also started the week on a stronger footing, with investors keeping a close watch on a $1.9 trillion COVID-19 aid package for the United States that is expected to be passed by lawmakers as soon as this month.