European Stocks Slip

The French and German stock markets snapped their eight-session winning streaks Monday, as investors paused following last week's global share rally.

France's CAC-40 index dropped 0.5% to 3577.88, and Germany's DAX declined 0.1% to 7154.22.

More

• U.S. Stocks Steady
• Dollar Dips Against Yen
• Treasury Prices Tumble

The Stoxx Europe 600 index closed down 0.1% at 272.07, its first decline in five days, while the U.K.'s FTSE 100 index slipped 0.1% to 5961.11.

In corporate news, TNT Express shares rose 1.1% after United Parcel Service said it has agreed to buy the company in an all-cash deal that values it at around €5.16 billion ($6.8 billion). UPS shares were up 4.1% in afternoon New York trading.

In London, banking software company Misys surged 7.4% after saying it has agreed to be taken over by private-equity firm Vista Capital Partners for 350 pence a share, valuing the company at £1.27 billion ($2.01 billion). Misys's board is recommending shareholders accept the offer, but another private-equity firm, CVC Capital Partners, reiterated Monday that it is considering making a higher offer for the company.

News from U.S. technology bellwether Apple helped to improve the mood in the afternoon and lift European indexes off their lows. Apple said it will buy back $10 billion in stock and pay a quarterly dividend of $2.65 per share, the company's first dividend since December 1995. Apple shares were up 2.2% in afternoon New York trading.

Auto makers weighed on the indexes. In Germany, BMW fell 1.6% after Goldman Sachs affirmed its buy rating on the stock but removed it from its conviction-buy list. On Friday, Bernstein & Co. cut its rating on the broader European auto sector. Daimler lost 0.2%, Volkswagen shed 0.9%, and Porsche Automobil Holding declined 2.2%.

In France, Peugeot stood out among car makers, rising 4.9%. General Motors Chief Executive Dan Akerson told The Wall Street Journal that the two car firms will begin joint development of at least two passengers cars by this fall. GM shares were down 0.3% in afternoon New York trading. A spokesperson from Peugeot wasn't immediately available to comment.

Reaction to the Greek auctions of credit-default swaps was muted. A panel of dealers determined in an auction Monday that holders of Greek credit-default swaps will be paid 78.5 cents on the dollar after Greece's debt restructuring, a result in line with expectations.

But Greek shares bucked the negative trend. The Athens General Index climbed 1.6% to 776.79. National bank of Greece jumped 6.2% and Hellenic Telecommunications Organization added 5%.

Write to Michele Maatouk at michele.maatouk@dowjones.com