European Markets Rise Amid Trade Tensions and Major Takeover Talks

European shares climbed on Monday, with the STOXX 600 index up 0.5%, as traders watch for trade agreement evolutions and a hectic week of financial reporting. Market optimism reflected improved U.S.-China trade relations, yet contrary signals persist. Key deals include Deliveroo's takeover proposal and Airbus's asset acquisition.

European indices recorded a positive start to the week, registering growth for the second consecutive week. Investors are focusing on upcoming trade developments and a busy schedule of earnings and economic data.

The STOXX 600 index advanced by 0.5% by early Monday, buoyed by improving signs of U.S.-China trade discussions, despite contradictory rhetoric persisting from both nations. U.S. Treasury Secretary Scott Bessent mentioned no tariff talks with Chinese representatives.

Business highlights included Deliveroo's 16.3% share surge following a takeover proposal by DoorDash. Airbus shares grew by 1.6% upon securing asset transfer arrangements with Spirit AeroSystems. Meanwhile, Mediobanca announced a significant bid for Banca Generali. Inflation data from both the euro zone and U.S. are eagerly awaited.

(With inputs from agencies.)