By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets kicked off the
week on a strong footing on Monday, with investors awaiting the
closely watched reading on inflation in the euro zone in March.
The Stoxx Europe 600 index climbed 0.6% to 335.58, setting it on
track for its highest closing level since early March.
The benchmark was lifted by a solid gain for Novartis AG (NVS),
up 3.2% after the drug maker said it will close its trial of a
heart-failure drug early because of the strength of the results so
far.
Also pushing higher, ING Groep NV gained 2.4% after the Dutch
bank said it will resume paying dividends in 2015.
More broadly, euro-zone consumer-price data were the main event
in Europe on Monday. Analysts expect a drop in inflation to 0.6%
from 0.7% in February, which could add more pressure on the
European Central Bank to either cut rates or launch new easing
measures at its meeting on Thursday. After a recent string of weak
inflation data, economists worry the euro zone could slip into
deflation, potentially hampering the fragile economic recovery. The
data come out at 10 a.m. in London, or 5 a.m. Eastern Time.
Data out on Friday showed Spain fell into deflation in March as
high unemployment and weak demand for goods among households and
businesses have added pressure on consumer prices.
Ahead of the euro-zone wide data on Monday most major European
stock indexes traded higher, taking a positive lead from Asia. The
U.K.'s FTSE 100 index gained 0.4% to 6,642.77, while France's CAC
40 index rose 0.2% to 4,419.61. Germany's DAX 30 index picked up
0.5% to 9,623.09.
The German benchmark was also helped higher by
stronger-than-expected report on retail sales for February, while
fourth-quarter economic growth in France was confirmed at 0.3%.
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