LONDON, July 10 (Reuters) - European stocks edged higher on Monday, with banks and utilities the strongest sectors, as mergers and acquisitions rumbled on with some broker notes also prompting individual stock moves.
The pan-European STOXX 600 .STOXX was up 0.4 percent by 0720 GMT, rising in concert with euro zone stocks .STOXXE and blue-chips .STOXX50E . Strong gains in banks .SX7P boosted the benchmarks, while basic resources .SXPP were weak.
Outside the main bluechips, UK midcap construction support services company Carillion CLLN.L grabbed traders' attention after a profit warning and CEO exit sent its shares tumbling nearly 40 percent in heavy volumes. shares are among the most heavily shorted across the UK market with hedge funds including Marshall Wace and Naya Capital reporting sizeable bearish bets according to FCA disclosure data.
In broader markets, Germany's DAX .GDAXI rose 0.6 percent, maintaining an edge over peers after both export and import figures came in stronger than expected, with a wider increase in exports adding to the trade surplus of Europe's biggest economy. in Norwegian conglomerate Orkla ORK.OL were among the strongest performers, up 2.4 percent after Norsk Hydro NHY.OL clinched a $3.2 billion deal to buy aluminum products maker Sapa by purchasing a 50 percent stake from Orkla.
CHR Hansen CHRH.CO jumped 3.3 percent, benefiting from a raise to 'buy' from Goldman Sachs (NYSE:GS), which said the company had strong pricing power.
And German utility E.ON EONGn.DE rose 2.5 percent, leading the buoyant utilities sector .SX6P after HSBC said recent weakness offered an "excellent buying opportunity", raising the stock to a 'buy' from 'reduce'. drugmaker Almirall ALM.MC also tumbled 20 percent after cutting its full-year guidance. Europe YTD - July 10
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