European shares edged higher on Monday, with energy and bank stocks spearheading gains, but were range-bound ahead of key US inflation data due later in the week that would offer more cues on the Federal Reserve's monetary policy path, reports Reuters. The pan-European STOXX 600 rose 0.2 per cent to 466.29 points by 0805 am GMT.
The index was pressured last week when, unlike the Fed, the European Central Bank signalled more rate hikes were on the table. A slump in energy shares on weakness in crude prices also added to the declines.
Energy was the top sectoral gainer on Monday, up 0.8 per cent as crude prices strengthened. Banks and healthcare shares were in tow, gaining 0.6 per cent and 0.5 per cent respectively.
After a solid US monthly jobs report last week, the focus turned to April's consumer prices reading due on Wednesday for clues on whether rate cuts in the world's largest economy were likely soon.
Additionally, the Fed's Senior Loan Officer Opinion Survey due later on Monday will be parsed for clues on the state of lending, given the recent turmoil among regional banks in the US
Wednesday's inflation data, which is expected to show core prices rose 0.4 per cent month over month, is unlikely to support the case for rate cuts, said Mark Haefele Chief Investment Officer, UBS Global Wealth Management in a note.
"In the other direction, the Senior Loan Officer Opinion Survey is almost certain to show that large numbers of banks are tightening their lending standards."
Meanwhile, data showed German industrial production fell more than expected in March, partly due to a weak performance by the automotive sector, again spurring recession fears in Europe's largest economy.
Germany's DAX index was flat.
Stock markets in London were closed for a holiday on Monday following the coronation of King Charles on Saturday.
Dutch Central Bank President Klaas Knot on Sunday said the ECB's rate hikes are starting to have an effect, but more will be needed to contain inflation. Among other movers, shares of Rational fell 1.6 per cent after Baader Helvea cut the German industrial kitchen equipment maker's rating to "reduce" from "add."
Wacker Chemie rose 1.3 per cent on Monday after the German chemicals company said it acquired 100 per cent of the shares of contract manufacturing company ADL BioPharma.
In a light day for earnings, PostNL jumped 10.4 per cent as the Dutch postal firm affirmed its 2023 outlook after reporting a smaller-than-expected drop in first-quarter parcel volumes.
