European stocks advance as Brexit trade deal talks continue

European stocks traded higher Monday as market focus remains on negotiations between the U.K. and EU on a post-Brexit trade deal.

The pan-European Stoxx 600 added 0.9% in early trade, with banks climbing 2.5% to lead gains as almost all sectors and major bourses entered positive territory.

British banks and homebuilders were the biggest winners on the Stoxx 600 in early deals, with Lloyds, Taylor Wimpey, Persimmon, Bellway and NatWest all climbing more than 5%.

At the bottom of the European blue chip index, AstraZeneca shares dropped more than 5% after the announcement that the pharmaceutical giant had bought out Alexion Pharmaceuticals for $39 billion.