European shares muted as investors weigh US-Iran talks

European shares were muted at the open on Monday as investors assessed the latest round of U.S.-Iran negotiations for signs of progress toward resuming shipping through the Strait of Hormuz, a critical artery for global oil trade.

Brent Crude prices declined 1.6%, and were trading below $80 per barrel after mediators Qatar and Pakistan said that Washington and Tehran had agreed on a roadmap for a final deal and measures to safeguard shipping through the Strait of Hormuz. Tehran had declared the waterway closed on Sunday, casting doubt on the ceasefire's sustainability.

The pan-European STOXX 600 index .STOXX edged 0.05% higher to 635.92 points by 0711 GMT.

Tech stocks <.SX8P> led sectoral gains, rising 1.2%, with chipmaker Infineon IFXGn.DE and semiconductor equipment maker Aixtron AIXGn.DE gaining 4.5% and 2.3%, respectively, tracking advances in Asian equities.

In M&A activities, shares of budget airline easyJet EZJ.L rose 2.3% after U.S. investment firm Castlelake went public with a £4.74 billion ($6.26 billion) offer.

Danone DANO.PA shares slipped 0.4% after the French food giant said it will acquire Australian company MADE Group for an undisclosed amount.

Among other movers, the UK's defence and engineering group Babcock BAB.L dropped 3.3% following a sharp decline in its annual profit on a £140 million frigate charge.

($1 = 0.7571 pounds)

-Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Rashmi Aich/Reuters