European and US shares started August on a high as oil eased while reports of talks between AstraZeneca and US rival Bristol Myers Squibb on a €350 billion tie-up dominated markets news.DUBLINDealers said there was little movement in Irish Continental Group and Permanent TSB, two stocks destined for take over.Permanent TSB dipped 0.34 per cent to €2.96, one cent below the price at which Austrian group Bawag is destined to buy the Irish bank. Volumes were light, dealers noted.Ferry operator Irish Continental Group edged 0.51 per cent up to €7.94.Ryanair climbed 2.23 per cent to €2.96 as airlines and travel stocks won favour with investors on the back of a slide in oil prices.Speculation about another possible interest rate hike boosted the banks. AIB gained 2.15 per cent to €10.475 while its peer Bank of Ireland advanced 2.82 per cent to €18.60.The market’s two homebuilders also made ground. Cairn Homes added 1.03 per cent to close at €2.46 while Glenveagh Properties rose 1.26 per cent to €2.415.Dealers said the bank holiday meant volumes were generally light on Monday.LONDONPharmaceutical group AstraZeneca plunged almost 9 per cent to 11,500 pence sterling on news that it was in talks to buy US rival, Bristol Myers Squibb in a deal that would create the world’s fourth biggest drug maker.The Financial Times reported that the pair had been in talks on a deal that could lead to a €350 billion tie up.AstraZeneca is the UK’s second biggest listed company and already has a US presence. However, investors questioned the rationale for the deal, sending the stock tumbling on Monday.The fall dented London’s blue-chip FTSE 100 Index on a day when Paddy Power parent, Flutter Entertainment delisted from the London Stock Exchange. Budget airline and Ryanair rival, Easyjet added almost 2 per cent to 642.2p. Its board confirmed on Monday that it was extending the deadline for bidder Castlelake to make a firm offer to Friday. Apollo Capital Management is also circling the airline.Aer Lingus owner International Consolidated Airlines’ Group ended 0.37 per cent up to 433.5p.Oil futures fell on US president Donald Trump’s decision to hold off on a further attack on Iran, aiding airline stocks. Elsewhere, InterContinental Hotels Group fell 2.2 per cent to 157.15p after mixed results and guidance from US rival, Marriott International.On the FTSE 250, Clarkson climbed 9 per cent to 5,155p as it said it expects full-year performance to be “materially” ahead of market expectations following an exceptional first half.EUROPEThe pan-European STOXX 600 index closed up 0.5 per cent at 652.09 points and hovered near a record high it clinched on Friday. Most big regional bourses ended higher.Ipsen dropped 8.4 per cent to €153.10 after Jefferies downgraded the French pharma firm to an underperform rating, flagging risks to its Somatuline drug.Italian electrical cable maker Prysmian edged 0.6 per cent lower to €119.45 after agreeing to buy U.S. electrical products maker Atkore for $95 per share in cash.NEW YORK Bristol Myers Squibb shares rose 1.7 per cent after Wall Street opened, spurred by news of talks with AstraZeneca, but reversed those gains by 5pm Irish time, when it traded 0.4 per cent down.Elon Musk’s SpaceX, which will report its first quarterly results since going public after markets close on Tuesday, advanced 2.3 per cent. The stock has been trading ‌below its $135 offering price for nearly three weeks.Other AI-linked companies ​reporting this week include Palantir, Advanced Micro Devices as well as data storage companies SanDisk and Western Digital . – Additional reporting: Reuters