Chinese Data Lifted European Stocks in Early Trading

European stocks rose slightly on Monday after a decline in producer prices in China and the rise in oil prices, while investors looking to Washington for signs of new US stimulus.

By 0712 GMT, the pan-European STOXX 600 index was up 0.3%, at the start of a week that could see tepid trading with the start of the summer holidays for dealers.

Sectors considered more sensitive to economic health such as banks, oil and gas, and auto makers rose as data showed China’s factory deflation eased in July, due to the rise in global oil prices and the return of industrial activity to levels before the pandemic.

Shares of major energy companies BP, Royal Dutch Shell and Total rose about 2 driven by the rise in crude prices.

French engineering company SPI jumped 5.7% double upgrade to “buy” from Jefferies, while Dutch technology investor Prosus fell for the third day in a row, affected by US preparations to ban the two popular Chinese apps, We-chat and Tik-Tok. The technology and healthcare sectors, two of the heavyweights, fell 1% and 0.4%, respectively, which limited the overall market gains.