European shares edged higher on Monday, with most sectors trading in the green, as investors returned to risk assets after ending the previous week on a slightly dour note. The pan-European STOXX 600 (.STOXX), opens new tab was up 0.4% at 580.35, as of 0808 GMT, remaining within striking distance of an intraday record high. Major regional bourses also advanced, with Spain's (.IBEX), opens new tab up 0.8% and London's (.FTSE), opens new tab gaining 0.4%.
The STOXX 600 slipped into a weekly decline at the last minute on Friday, tracking losses on Wall Street, after U.S. chipmaker Broadcom's (AVGO.O), opens new tab profit margin warning rekindled concerns over a potential AI bubble.
The market staged a broader recovery on Monday, with 19 of the 20 main sectors trading higher, with heavyweight banks (.SX7P), opens new tab and energy stocks (.SXEP), opens new tab up more than 1% each.
Healthcare (.SXDP), opens new tab was the only sector in the red, weighed down by a nearly 5% drop in French drugmaker Sanofi (SASY.PA), opens new tab after expectations grew that the U.S. Food and Drug Administration would delay a decision on its multiple sclerosis drug tolebrutinib.
Over the weekend, Ukraine President Volodymyr Zelenskiy offered to drop the country's aspirations to join the NATO military alliance after talks with the U.S. on Berlin, that are set to continue on Monday.
Major defence firms slipped, with Rheinmetall (RHMG.DE), opens new tab and Renk (R3NK.DE), opens new tab off 1.6% and 2%, respectively. The broader aerospace and defence index (.SXPARO), opens new tab was off 0.1%.
