MILAN/FRANKFURT: European shares rose on Monday as a decision to extend trade talks between Britain and the European Union kept hopes of an eventual deal alive, but gains in London's blue-chips lagged a higher pound and a near 6% drop in AstraZeneca weighed.
With banks in the lead, Europe's benchmark STOXX 600 index rose 0.4% after breaking a five-week winning streak to end 1% lower last week.
Optimism also stemmed from hopes of an end to the Covid-19 pandemic as the United States was set on Monday to begin inoculating its citizens with the Pfizer-BioNtech vaccine. Last week, Britain became the first Western nation to begin mass vaccinations.
London's FTSE 100 was range-bound, and ended the session 0.2% lower as a rising pound, declining energy shares and AstraZeneca restrained the market.
AstraZeneca posted its worst session in nine months as investors priced in the British drugmaker's move to buy US drugmaker Alexion Pharmaceuticals for $39 billion. German stay-at-home stocks gained after a new lockdown was announced to rein in the spread of Covid-19. Most stores will be closed in Germany from Wednesday until at least Jan. 10, Chancellor Angela Merkel said on Sunday, cutting short the busy Christmas shopping season.
Shares in online fashion retailer Zalando and food delivery firm Delivery Hero surged 6.7% and 4.7%, respectively. The blue-chip DAX index was up 0.8%, logging its best session in three weeks.
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