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European Markets Pare Early Gains As Miners Struggle

The European markets got off to a positive start Monday, fueled by the stronger than expected U.S. jobs report and the rally it sparked on Wall Street at the end of the prior trading week.

However, the markets pared their gains over the course of the trading day and finished little changed overall. Early optimism began to fade due to a lack of catalysts. There was a decided lack of both economic and corporate news Monday. The lackluster open on Wall Street also contributed to the pullback.

Mining stocks struggled due to the tariffs on steel and aluminum imposed by U.S. President Trump last week.

Meanwhile, utilities were among the best performers after E.ON and RWE announced they are planning a major asset swap involving RWE subsidiary Innogy.

The pan-European Stoxx Europe 600 index advanced 0.25 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.26 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.23 percent.

The DAX of Germany climbed 0.58 percent and the CAC 40 of France rose 0.04 percent. The FTSE 100 of the U.K. declined 0.13 percent and the SMI of Switzerland finished higher by 0.44 percent.

In Frankfurt, RWE soared 9.20 percent after the company reached an agreement in principle according to which RWE shall sell its 76.8 percent stake in Innogy SE to E.ON. Innogy jumped 12.05 percent while E.ON advanced 5.49 percent.

Deutsche Bank rose 0.14 percent on reports that the management board is seeking to cut as many as 6,000 jobs at the lender's retail unit by the end of 2022.

In Paris, Air France KLM climbed 1.54 percent amid reports that a consortium of India's Jet Airways, Air France-KLM and Delta Air Lines are bidding for national carrier Air India.

In London, engineering group GKN dropped 2.64 percent after Melrose raised its offer for the company to £8.1bn. Melrose shares declined 3 percent.

Just Eat fell 0.86 percent after Deutsche Bank downgraded its rating on the stock to "Sell" from "Hold."

Bakery business Aryzta tumbled 2.30 percent in Zurich after widening its first-half net loss.

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