**: Global Market Broadcast.
Europe edged lower on Monday after a strong last week as investors await Tuesday's industrial output data.
The STOXX Europe 600** was largely unchanged and closed in overbought territory on Friday. The sectors that led the declines on Monday were energy stocks and mining stocks that followed iron ore***. Shares of bookmaker Flutter Entertainment PLC weighed heavily on travel and leisure stocks after news broke that the company would be removed from the Eurozone Stoxx 50 index.
Meanwhile, Germany's DAX index is still trading near record highs, at 18% so far this year.
Among others**, Roche Holdings**, which agreed to acquire weight-loss drug maker Carmot Therapeutics for no more than $3.1 billion. Engine maker Rolls-Royce Holdings**, JPMorgan Chase upgraded the stock. Nokia**, investors speculate that the telecom equipment maker may be removed from AT&T's list of 5G equipment vendors**.
Europe** has had a good start to the month, extending the November rally. Benefiting from optimism over slowing inflation and expectations of peak interest rates, the STOXX 600 posted its best monthly performance since January in November. The percentage of overbought** among the index's constituents is now the highest since February.
Joachim Klement, strategist at Liliberum, said: "After the November rally, Europe is already overbought, and we think investors should take advantage of further opportunities this week to start taking profits and move to more defensive sectors such as healthcare and consumer staples." ”
Investors' focus is on the industrial output data to be released this week, starting with France and Spain on Tuesday, which will help investors better understand the state of these economies.