European Shares Gain On China Stimulus Bets

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European stocks were slightly higher on Monday as weak inflation data from China added to the case for policymakers to launch more stimulus.

Meanwhile, investors shrugged off data showing that investor morale in the euro area sank more than expected in July. Sentix’s index for the euro zone dropped to -22.5 points from -17.0 in June.

The pan European STOXX 600 edged up 0.2 percent to 448.30 after ending flat with a positive bias on Friday.

The German DAX rose 0.4 percent, France’s CAC 40 added half a percent and the U.K.’s FTSE 100 was up 0.1 percent.

The dollar weakened and benchmark 10-year U.S. Treasury yields retreated from a more than four-month peak as traders looked ahead to the release of U.S. consumer and producer price data this week for clues on the potential trajectory of interest rate hikes by the Federal Reserve.

Oil & gas giant BP Plc rose 0.7 percent and Shell added 1.4 percent in London after oil prices jumped about 3 percent last week to a nine-week high on supply concerns.

A fall in base metal prices weighed on miners, with Anglo American and Antofagasta falling over 1 percent.

Future Plc, a specialist media company, soared more than 7 percent after announcing a 45-million-pound share buyback.

Self-storage company Big Yellow Group fell over 2 percent despite reporting a 6.7 percent rise in first quarter revenue.

Beter Bed Holding N.V. soared 95 percent after it accepted a bid from Torqx Capital Partners, which values the firm at 168 million euros.

Bayer shares climbed 2.3 percent after reports that the German drugs-to-pesticides giant could spin off and list its agricultural division.

French ophthalmology company Nicox SA jumped 14 percent. The company said it estimates potential sales for NCX 470 of more than $300 million within 8 years from launching in the U.S. and China.

Kering was marginally lower. The luxury group paid 3.5 billion euros ($3.83 billion) for acquiring high-end French fragrance label Creed in June, the Financial Times reported, citing people familiar with the matter.

Casino Guichard Perrachon dropped 2.6 percent on concerns about debt restructuring ahead of the end-July deadline.

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