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European stocks closed broadly flat; Philips rallies 4.36% after earnings

European stocks closed broadly flat on Monday with investors focused on fresh economic data and corporate earnings.

Spain stocks rally

European Markets: FTSE, GDAXI, FCHI, IBEX

The pan-European STOXX 600 was 0.01 percent in the red, having been 0.44 percent up at the beginning of the week's first trading day.

Spain's IBEX 35 finished 1.27 percent up at the close as political uncertainty dissipated. Mariano Rajoy, the caretaker prime minister, is set to lead a minority government after the socialist party voted not to block the re-election of the former. Spain has been without an executive in full-capacity since December of last year.

Elsewhere, the U.K.'s FTSE 100 edged down by 0.49 percent while the French CAC 40 and German DAX posted gains of 0.36 and 0.47 percent respectively.

Meanwhile, in the US, the Dow Jones industrial average was 0.48 percent in green as the broader S&P 500 index traded 0.45 percent up, having continued its positive start to the trading day.

Philips earnings rise

It is an important week for earnings. In Europe, Philips released new numbers showing third-quarter sales of 5.9 billion euros and a 14 percent improvement in adjusted EBIDTA (earnings before interest, taxes, depreciation and amortization). The stock was higher by 4.36 percent.

Meanwhile, easyJet shares were higher after UBS raised its outlook on the stock. The AT&T and Time Warner deal boosted European media shares with the likes of ITV in positive territory.

Data in focus

Data released Monday showed economic activity in the euro zone hitting a high for 2016 in October.

An initial estimate by IHS-Markit for its euro zone purchasing managers' index rose to 53.7 from 52.6 in September, representing the highest monthly increase since 2016 began. The index measures both the services sector and manufacturing.

Media reports over the weekend said that small U.K.-based banks were preparing to leave the city before the end of the year, whereas international banks were planning its departure for the start of 2017.

Oil prices fell Monday after Iraqi officials said the country would not be part of any deal to cut OPEC production.

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