European share loses gain streak as tech, healthcare stocks drop

European shares turned from three-month highs on Monday after technology and healthcare stocks saw losses. The drop dented hopes of an economic recovery from the COVID-19 pandemic.

The STOXX 600 index slipped 0.4% as investors retreated from expensive names and flocked to banking, auto, and oil & gas stocks.

Europe’s healthcare index lost 1.5%, with AstraZeneca dropping more than 2.7%. Shares from the pharmaceutical company fell after Bloomberg reported that it had approached its U.S. rival Gilead Sciences about a possible merger, which could have formed the largest drug company in the world.

Oil giants including Royal Dutch Shell, BP, and Total gained between 0.7% and 3.0% after oil prices rose when major producers agreed to extend a deal on record production cuts.

Danske Bank gained 8.2% after Estonian bank LHV agreed to buy its Estonian corporate and public sector credit portfolio. Germany’s card payment company Wirecard also fell by 3.3%

Shares from Swedish telecoms manufacturer Ericsson’s dropped by 2.2% after it said that its 2Q results would decline by 1 billion Crowns ($108.8 million) due to write-downs of product inventory in the Chinese market. 

The STOXX 600 index had closed just 14% below its all-time high in a previous session on Friday, with the U.S. NASDAQ index overtaking its intraday record high.