- Meggitt hits record high on Parker-Hannifin deal
- HSBC, AXA rise after results
- Allianz slides on U.S. probe
Aug 2 (Reuters) - European stocks ended at a new peak on Monday, as increased dealmaking activity and a batch of strong financial sector earnings helped markets mark a strong start to August.
British aero-engineer Meggitt (MGGT.L) soared 56.7% to the top of the STOXX 600, hitting a record high after U.S. industrial firm Parker-Hannifin (PH.N) said it would buy the UK rival in a deal valued at $8.76 billion. read more
Among other deals, British asset management services provider Sanne Group (SNNS.L) jumped 7.6% after it said it could get a takeover bid from fund servicer Apex Group.
Axa (AXAF.PA), Europe's second-largest insurer, gained 4.2% after it posted a 180% surge in first-half net income.
Of the more than half of the STOXX 600 companies that have reported second-quarter results so far, 67% have topped profit estimates, as per Refinitiv IBES data.
"Having reached all-time highs post 1Q results, the breadth of positive EPS revisions in Europe remains very strong both in absolute terms and versus peers," European equity strategists at Morgan Stanley said in a note. "Europe now sees the best earnings revisions of all global regions."
Optimism around European earnings and economic reopening helped the benchmark STOXX 600 end July with a sixth straight month of gains despite concerns about inflation, soaring virus cases in Asia and a major regulatory crackdown in China.
Meanwhile, a survey showed manufacturing activity across the euro zone continued to expand at a blistering pace in July, but supply bottlenecks sent input costs soaring.
German carmaker Daimler (DAIGn.DE) rose 1.5% after Goldman Sachs added the stock to its conviction list.
($1 = 0.8415 euros)
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