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European Shares Inch Higher On Policy Stimulus Hopes


European stocks rose on Monday on improved risk appetite, as U.S. Treasury yields bounced back and investors cheered reports of China interest rate reforms as well as German fiscal stimulus to counter a possible recession.

Investors also kept a close eye on Federal Reserve Chairman Jerome Powell's speech later this week for his commentary on interest rates.

The pan European Stoxx 600 was up 0.55 percent at 371.68 after climbing 1.2 percent on Friday.

The German DAX was up 0.6 percent, France's CAC 40 index was gaining half a percent and the U.K.'s FTSE 100 was climbing 0.9 percent.

Novartis rose 0.6 percent on reports the Swiss drug maker is planning to give details on data manipulation related to its gene therapy Zolgensma.

Deutsche Bank's shares rallied 2.8 percent. A Spiegel report said that some major investors of the bank want supervisory board chairman Paul Achleitner to step down before his term ends in 2022.

Rival Commerzbank jumped 2.3 percent as longer-term bond yields in the euro zone came off their record low levels. French banks BNP Paribas and Societe Generale rose around 1 percent.

Energy giant BP Plc rose 0.7 percent and Royal Dutch Shell gained nearly 1 percent as an attack on a Saudi oil facility by Yemeni separatists added to tensions in the Middle East.

Miners Anglo American, Antofagasta and Glencore were up between 1.6 percent and 2.2 percent.

Gold mining company Centamin tumbled 3.4 percent as gold prices dipped on a firmer dollar.

Safestore Holdings rallied 2 percent. The self-storage group is forming a joint venture with Carlyle European Real Estate Fund to acquire M3 Self Storage, a Dutch operator of six prime storage locations.

Sainsbury jumped 3.4 percent after denying reports that it is speaking to internal candidates about replacing its current chief executive Mike Coupe.

In economic releases, Eurozone inflation eased more than initially estimated in July to the lowest since late 2016, final data from Eurostat showed.

Headline inflation slowed to 1 percent in July from 1.3 percent in June. The initial estimate was 1.1 percent.

Separately, figures from the European Central Bank revealed that Eurozone's current account surplus decreased in June to its lowest level in nearly two- and-a-half years.

The current account surplus fell to EUR 18.352 billion from EUR 30.291 billion in May.

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