BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets ended the first day of the new trading week firmly in positive territory. Investor sentiment received an early boost from the strong performance of the Asian markets, as well as some positive economic data from China and Japan. Traders were also encouraged by some merger and acquisition activity, as Thales agreed to buy Gemalto.
Bank stocks turned in a strong performance, due to optimism over the prospects for U.S. tax reform. The House is scheduled to vote on the bill Tuesday, with a vote in the Senate expected to follow shortly thereafter.
The pan-European Stoxx Europe 600 index advanced 1.20 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 1.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.08 percent.
The DAX of Germany climbed 1.59 percent and the CAC 40 of France rose 1.33 percent. The FTSE 100 of the U.K. gained 0.62 percent and the SMI of Switzerland finished higher by 0.61 percent.
In Frankfurt, Vonovia rose 1.19 percent after it agreed to buy Austrian real estate firm Buwog for an enterprise value of 5.2 billion euros ($6.12 billion). Buwog surged 17 percent in Vienna.
In Paris, Thales soared 8.15 percent. The aerospace and defense group has agreed to buy chipmaker Gemalto for 4.8 billion euros ($5.6 billion). Shares of digital security solutions provider Gemalto surged 5.62 percent in Amsterdam.
In London, 3i Infrastructure rallied 2.32 percent after it agreed to sell its stake in U.K. water supplies company Anglian Water Group.
Mondi climbed 2.15 percent after Deutsche Bank upgraded its rating on the stock to 'Buy' from 'Hold.'
Spread betting firm IG Group plunged 9.28 percent, Plus500 lost 10.43 percent and CMC Markets tumbled 12.52 percent after European regulators proposed a raft of new restrictions on trading platforms offering so-called contracts for difference.
Unilever rose 0.53 percent in Amsterdam after its announcement to sell spreads business to KKR for $8 billion.
Oil and gas firm Statoil advanced 0.41 percent in Oslo after buying a 25 percent stake in a major Petrobras oilfield.
Eurozone consumer price inflation rose slightly as estimated in November, final data from Eurostat showed Monday. Consumer prices advanced 1.5 percent year-on-year in November, following October's 1.4 percent increase. The rate came in line with the flash estimate published on November 30.
Italy's foreign trade surplus increased in October from a year ago, as exports grew faster than imports, figures from the statistical office Istat showed Monday.
The trade surplus rose to EUR 4.95 billion in October from EUR 4.19 billion in the corresponding month last year. In September, the surplus was EUR 3.99 billion.
The squeeze on UK household finances softened slightly in October, data compiled each month by IHS Markit, using data collected by Ipsos MORI, showed Monday. The household finance index rose to 43.9 in December from 43.5 in November.
UK manufacturing order books were close to a 30-year high in the fourth quarter, monthly Industrial Trends survey from the Confederation of British Industry showed Monday.
About 28 percent of manufacturers reported that total order books were above normal, and 11 percent said they were below normal, giving a balance of +17 percent, which was the joint highest with last month and August 1988.
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