European stocks erased earlier losses and closed slightly higher on Monday, extending gains from the previous week as the view of a favorable macroeconomic backdrop offset lingering risks from geopolitical events and fresh attacks on the Federal Reserve by the US presidential administration. The Eurozone's STOXX 50 gained 0.2% to 6,010 and the pan-European STOXX 600 added 0.2% to 610. Heavyweight sectors in industrials and financial services providers extended their recent positive momentum, with Siemens, Airbus, Deutsche Bank, and BBVA all adding between 4% and 1%. Tech shares were also mostly higher despite the lingering skepticism on the fundamentals for AI returns against their soaring capital expenditures, with Prosus jumping 3.7%, while ASML and Infineon both advanced. On the other hand, Sanofi and argenx booked losses to set the pace for the pharmaceutical sector.