LONDON Jan 14 European shares were flat on Monday, with French energy firm EDF the top gainer after it reached a deal with the government over a tax levy shortfall.
The FTSEurofirst 300 was at 1,163.91 by 0813 GMT, consolidating just shy of a two-year high after rising almost 3 percent since the start of the year.
Corporate earnings season would likely remain the main driver of market sentiment, Craig Erlam, market strategist at Alpari, said.
"With earnings expectations so low for the fourth quarter, it's difficult to see where any downside is going to come from. As a result, I expect European markets to continue to rally this week," he said.
The banking sector in particular will fall under the spotlight this week, with JPMorgan and Goldman Sachs among firms set to report.