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Europe ends mixed after ARM rallies on Softbank bid; oil tumbles

Europe finished Monday mixed as investors cheered on the rally in ARM after Softbank tabled a $32 billion offer for the semiconductor giant; however geopolitical events around the world continued to add pressure to the region.

The pan-European STOXX 600 closed in positive territory, settling 0.2 percent up.

The U.K.'s FTSE 100 pushed higher, closing up 0.4 percent, as sterling continued to rise against the dollar, up at $1.3299 at the market close. Meanwhile, France's CAC and Germany's DAX closed 0.3 percent down and roughly flat, respectively.

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Softbank announced on Monday that it would pay £17 per share for ARM Holdings, a 43 percent premium on Friday's closing price, in an all-cash deal. Shares of ARM rallied over 46 percent, before paring slightly to close up around 40.9 percent. Other chipmakers including Dialog Semiconductor and Austria Microsystems all finished higher, closing above 4.5 percent each.

As well as the major corporate news, investors are also digesting the geopolitical scene as some stability returned to southeastern Europe after an unsuccessful coup against Turkish President Recep Tayyip Erdogan late on Friday.

Turkey widened a crackdown on suspected supporters of the coup on Sunday, taking the number of people rounded up in the armed forces and judiciary to 6,000, Reuters reported. The unrest in Turkey added pressure to travel stocks such as Thomas Cook and TUI, which both ended in the red.

In other news, France began its third day of mourning on Monday for the victims of the Bastille Day attack in Nice that killed 84 people. More details have emerged about the killer Mohamed Lahouaiej Bouhlel, who was reportedly linked to the militant group Islamic State.

Tensions are also running high in the U.S. after three police officers were shot dead in Baton Rouge by a gunman in an ambush-style assault on Sunday. President Barack Obama condemned the killings and called for a measured response ahead of the party conventions.

During the trading session, foreign ministers have been meeting in Brussels under the cloud of geopolitical tension. While new British Foreign Minister Boris Johnson faced his European counterparts for the first time in his new role; the unrest in Turkey was a key focus for ministers on Monday; with Germany's foreign minister saying any decision by Turkey to reintroduce the death penalty after last week's events, would derail the country's efforts to join the EU; Reuters reported.

Global markets, however, tried to shake off geopolitical concerns, with Asia closing mostly higher, and U.S. stocks trading higher as investors embraced another earnings season. Elsewhere, the European Central Bank published its first list of corporate bond purchases on Monday.

Oil tumbles, while Ericsson feels the heat

In individual stock news, Credit Suisse cut its outlook on Glencore from "outperform" to "neutral" but raised its price target for the stock along with Anglo American, Rio Tinto and BHP Billiton. All of these stocks closed in negative territory, with the exception of Glencore, which recovered, to close up 0.2 percent.

Meanwhile, oil prices fell over 2 percent during London's late trade, with Brent and U.S. crude hovering around $46.76 and $45.11 respectively, at Europe's close. Prices came under pressure as rising stocks of crude and refined fuel ignited concerns over another glut building in the market.

While most energy stocks closed lower, Sbm Offshore jumped 15.3 percent after the oil firm announced late last week that it had signed a leniency deal with Brazilian authorities and Petrobras.

Elsewhere, the banks were once again in focus. Banca Monte dei Paschi di Siena closed almost 2 percent down after Moody's downgraded the bank's subordinated ratings and estimated a 2-5 billion euro capital shortfall at the troubled Italian lender.

Spain's BBVA ended 2.8 percent down after Credit Suisse cut its price target for the stock. The failed coup in Turkey is also adding pressure to the Spanish lender, with BBVA having a close to 40 percent stake in Turkish bank Garanti, according to Reuters.

Ericsson was also in focus on Monday, after the telecom equipment maker denied any wrongdoing after a report by newspaper Svenska Dagbladet, said its accounting was inflated, citing unnamed sources. Following the report, the Swedish firm issued a statement, saying that "the claim that Ericsson in a wrongful way has reported income in its accounting is not correct". Shares closed over 3 percent down.

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