European stock rally fades despite M&A surge and Wall Street gains

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European stock rally fades despite M&A surge and Wall Street gains
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European stock-market rally loses steam late Monday

The Stoxx Europe 600 index SXXP, +0.14% rose 0.2% after ending last week nearly 1.7% higher, the best weekly return since the week ending August 7. The French CAC 40 FR:PX1 rose 0.4%, but the German DAX DAX, -0.07% and the FTSE 100 index UKX, -0.09% fell 0.1%.

Renewed hopes over a coronavirus vaccine also helped improved sentiment at the beginning of the week. U.S.-based Gilead Sciences Inc. GILD announced a $21 billion deal on Sunday to buy biotech Immunomedics Inc. IMMU, maker of a key breast-cancer drug.

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