- Bayer slumps after $2.1 billion Roundup verdict
- RWE rises as Elliott discloses stake, calls for buyback increase
- German growth edges up in March, according to PMI data
- French private sector output contracts further in March, PMI data shows
- STOXX 600 up 0.4%
March 24 (Reuters) - European shares rose on Monday as data showed euro zone business activity grew at its fastest pace in seven months in March, lifting sentiment, while investors awaited more clarity on U.S. tariffs.
The pan-European STOXX 600 was 0.4% higher by 0908 GMT as data showed Germany's manufacturing production increased for the first time in almost two years.
In a separate survey, France's flash purchasing managers index (PMI) indicated business activity contracted for a seventh consecutive month in March, although less than economists had forecast.
The STOXX 600 index climbed last week after two consecutive weekly losses as Germany gave the final green light to a massive surge in borrowing to spur growth in the region's largest economy.
"The trillion-euro question is whether Germany will use the sugar rush recovery to implement much-needed reforms or whether the stronger growth will actually make it feel less pressing and politically more difficult," Deutsche Bank said in a note.
"We will probably see the positive growth impacts before we know if they will fail to do the reforms. So momentum still remains in the German risk trade for now in my opinion."
Germany's fiscal boost, along with U.S. President Donald Trump's trade war on multiple fronts has prompted economists to rein in their U.S. growth forecasts, making European equities more attractive.
The STOXX 600 has risen 8.3% this year compared with a 3.6% drop in the U.S. benchmark S&P 500 index . Germany's benchmark index outperformed most of its regional peers with its 15.6% rise so far in 2025.
Mining stocks led gains among sectors on Monday, firming 1.9% on higher copper prices. J.P.Morgan also double upgraded the European mining sector to "overweight" from "underweight".
Investors are awaiting details on Trump's promise to slap reciprocal levies on U.S. trading partners on April 2 as his changing tariff threats have left nations and businesses uncertain of what to expect next.
Among stocks, Bayer slid 6.6% after the seeds and pesticides maker was ordered by a U.S. jury to pay about $2.1 billion to a plaintiff who claimed the company's Roundup weed killer caused his cancer.
RWE shares gained 2.8% as activist investor Elliott disclosed a stake in Germany's biggest utility and urged the firm to increase its 1.5 billion euro ($1.6 billion) share buyback programme.
Reporting by Medha Singh in Bengaluru; Editing by Eileen Soreng and Shounak Dasgupta
Source: Reuters