European stocks experienced a quiet trading session on Monday leading up to the Christmas holiday. The pan-European STOXX 600 remained virtually unchanged at 502.45 as investors refrained from making substantial investments due to political uncertainties in Germany and France, as well as ongoing concerns about tariff threats from the U.S. administration.
The German DAX and the UK's FTSE 100 saw slight declines, while France's CAC 40 slipped by 0.2% following the postponement of an announcement regarding France's new government until Monday evening.
The U.S. dollar remained stable after November's U.S. core PCE inflation figures fell short of expectations, indicating the possibility that the Federal Reserve's stance on inflation might be overly pessimistic.
The British pound exhibited minor fluctuations, staying below 1.2600, as official data revealed that the UK economy remained stagnant in the third quarter due to decreased export demand. The real gross domestic product (GDP) showed no growth during this period, revised down from an initial estimate of a 0.1% increase.
In corporate developments, AstraZeneca shares increased by approximately 1% following the EU approval of its lung cancer treatment Tagrisso, based on "impressive results" from a phase III trial. Meanwhile, Aviva experienced slight losses, but Direct Line Insurance saw a nearly 3% rise. Direct Line's board agreed to a £3.7 billion acquisition by Aviva, having previously turned down offers from its insurance rival.
Chesnara, a consolidator in the life and pensions sector, saw its shares fall by about 1% after announcing a second portfolio acquisition agreement with Canada Life Ltd., known as Canada Life UK, for a closed portfolio of unit-linked bonds and legacy pension business.
Swisscom's shares advanced by 0.5% following regulatory clearance from Italy's competition authority and industry ministry for its planned acquisition of Vodafone Italia.
Novo Nordisk's stock surged by 9% despite reporting less than favorable trial outcomes for its new weight-loss drug CagriSema.
Renault's share price dropped 0.6% after both Nissan and Honda disclosed their entry into formal merger discussions aimed at forming the world's third-largest automaker by sales. Renault holds a minority interest in Nissan.
Knorr-Bremse AG witnessed a decline of more than 1% in its stock value. The German brake systems manufacturer officially completed the sale of its U.S. subsidiary Sheppard to Balmoral RHS Acquisition Corp., allowing the company to refine its focus on braking technologies and bolster operational growth.
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