European shares rise as Dialog Semi lifts technology stocks

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 5, 2021. REUTERS/Staff

(Reuters) – European shares rose on Monday, after their best weekly gain in nearly three months, as Dialog Semiconductor boosted technology stocks, while hopes remained of a quicker economic recovery against the backdrop of vaccine roll-outs globally.

Renesas Electronics Corp and Dialog Semiconductor said they had agreed for the Japanese chipmaker to buy the Frankfurt-listed chip designer for 4.9 billion euros ($5.90 billion) in cash.

The pan-European STOXX 600 index rose 0.4%, adding to previous week’s gains of 3.5%, with technology shares rising 1.3%.

Frankfurt shares rose 0.6%, outperforming European peers in early trading.

Most European sector indexes were higher moments after the open.

Global markets also started the week on a stronger footing, with investors keeping a close watch on a $1.9 trillion COVID-19 aid package for the United States that is expected to be passed by lawmakers as soon as this month.

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