European stocks continue to rally as corporate M&A activity kicks into high gear

European equities are on the rise to start the week as market participants are optimistic that the eurozone economy can withstand the adverse effects of trade tariffs enacted by US President Donald Trump. Bloomberg experts believe an uptick in mergers and acquisitions (M&A) within the bloc is boosting the value of regional stocks.

The Stoxx Europe 600 Index rose 0.4% in morning trading, as did the DAX Index in Germany. The automotive and tourism sectors led the gains, while insurance stocks lagged in terms of returns, the agency reported.

In a surprise move, Mediobanca SpA made a €6.3 billion ($7.2 billion) bid for management firm Banca Generali SpA, sending its shares up 9.7%. In addition, European giant Deliveroo Plc received a $3.6 billion takeover offer from its US rival DoorDash Inc. Stocks of the EU-based company jumped 16% on the news, Bloomberg said in a note.