European stocks held steady near record highs on MondaycrouchingtigerandhiddendragonAfter taking a breather after posting their best weekly performance since January, investors turned their attention to upcoming U.S. inflation data.

In London, the Stoxx Europe 600 index closed flat on the day after a series of corporate earnings that exceeded expectations helped the index rise 3% last week. Auto and health care stocks led the gains, with construction and utilities stocks falling the most.

In terms of individual stocks, better-than-expected results continue to emerge, with Diploma Plc rising 11% after raising its outlook. Spanish pharmaceutical company Almirall SA, which focuses on skin health, rose after sales exceeded expectations.

Anglo American rejected BHP Billiton's revised offer, which valued the company at about 34 billion pounds ($42.7 billion). Elsewhere, Novo Nordisk plans to issue bonds for the first time in more than two years to fund its plan to expand production of blockbuster drugs.

This month's stock market rally now faces the test of Wednesday's U.S. CPI.