European stocks opened higher on Monday as investors welcomed data over the weekend that showed deflationary pressures eased in China, stoking hopes that the world’s second-largest economy was stabilising.
Europe’s region-wide Stoxx 600 rose 0.8 per cent at the opening bell, lifted by gains in the basic materials sector, which tends to reflect expectations of demand from China.
In Paris, the Cac 40 advanced 0.9 per cent and Frankfurt’s Dax was up 0.6 per cent. China’s benchmark CSI 300 index added 0.7 per cent after inflation data showed consumer prices rose 0.1 per cent in August, compared with deflation in July.
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