European shares edged higher on Monday as investors remained upbeat about rate cut prospects from the U.S. Federal Reserve and the European Central Bank, while Dassault Aviation shares weighed on the index following a rating downgrade.
The pan-European STOXX 600 .STOXX edged up 0.2% by 0816 GMT, extending gains for a second session.
Eurozone banks .SX7E added 0.3%, with shares of Commerzbank CBKG.DE up 2.3% after talks of a merger with Deutsche Bank DBKGn.DE resurfaced, according to a source familiar with the matter.
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