European shares were little changed on Monday after ending the previous week with their strongest performance since mid-May, as investors shifted their attention to fresh corporate dealmaking, with a proposed takeover of British airline easyJet providing the biggest boost to market sentiment.
According to Reuters, the pan-European STOXX 600 index was broadly flat at 652.84 points as of 0710 GMT, following a strong weekly rally driven by easing geopolitical concerns and improving investor confidence.
EasyJet emerged as one of the top gainers, with its shares surging 11% after the budget airline agreed in principle to an improved takeover proposal from U.S.-based investment firm Castlelake. Reuters reported that the revised offer values the carrier at up to £5.5 billion (approximately $7.34 billion), sparking optimism across the travel sector.
The broader travel and leisure index climbed around 1%, making it the best-performing sector in early European trading. Reuters said the sector continued to benefit from declining oil prices and reduced concerns over supply disruptions after tensions in the Middle East eased in recent weeks.
Market sentiment has also been supported by the retreat in crude oil prices, which have fallen back to levels seen before the recent regional conflict. However, investors remain cautious as negotiations between the United States and Iran have yet to produce any significant diplomatic breakthrough, leaving geopolitical risks firmly on the radar, Reuters reported.
In corporate news, French defence company Thales slipped 1.4% after announcing an agreement to acquire the Gorgé family's stake in drone technology company Exail. Reuters said the transaction comes ahead of Thales' planned takeover bid for the remaining shares of the company.
Meanwhile, Ferrari gained 2% after unveiling a limited-edition 12-cylinder sports car equipped with a manual gearbox, a move aimed at enthusiasts seeking a more traditional driving experience. Reuters noted that the launch contrasts with investor concerns earlier this year, when the luxury carmaker's announcement of its first electric vehicle weighed on its share price.
Overall, European markets remained in a holding pattern as investors balanced optimism over corporate transactions and easing energy prices against lingering geopolitical uncertainties.
