BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks were modestly higher on Monday after U.S. jobs data beat forecasts and a report showed China's factory deflation eased in July, adding to signs of an economic recovery.
However, markets were off their day's highs amid a fresh flare-up in Sino-U.S. tensions and continued uncertainty about a deal on a U.S. stimulus package.
Amid mounting tensions between Washington and Beijing, U.S. Health Secretary Alex Azar offered President Donald Trump's strong support for democratic Taiwan.
China said it will impose sanctions on 11 U.S. citizens in response to similar measures from Washington on Chinese and Hong Kong officials.
In economic releases, a survey showed that investor morale in the euro zone rose for a fourth consecutive month in August.
Sentix's index for the euro zone improved to -13.4 from -18.2 in July. That marked the highest reading since pre-lockdown times in February.
The pan European Stoxx 600 was up 0.1 percent at 364.01 after rising 0.3 percent on Friday. France's CAC 40 index and the U.K.'s FTSE 100 rose about 0.3 percent, while the German DAX slid 0.1 percent.
Technology stocks were coming under selling pressure, with Infineon Technologies losing 1.4 percent and Dialog Semiconductor declining over 2 percent.
Cloud and ICT provider QSC advanced 1.5 percent after its second-quarter consolidated net loss narrowed to 5.1 million euros from 5.5 million euros in the first quarter.
Porsche Automobil Holding fell over 2 percent. The company, which holds the majority stake in German auto maker Volkswagen AG, reported that its first-half Group result after tax was a loss of 329 million euros, compared to prior year's profit of 2.38 billion euros. Volkswagen shares were down 0.7 percent.
Speed-train maker Alstom declined 1.7 percent. The company, which is in deal to buy Bombardier Transportation, said it remains convinced of the strong strategic rationale for the acquisition.
The company also said it is confident in its ability to restore in the medium term the profitability and commercial performance of the business.
BP Plc shares rallied 2.2 percent and Royal Dutch Shell gained 1.5 percent as oil prices rose on hopes that the worst may be over for fuel demand.
AVEVA Group added 1.8 percent. The information technology company confirmed that it has entered into discussions with OSIsoft, LLC regarding a potential acquisition.
Clarkson shares surged 11 percent. After delivering a robust first-half performance, the shipping services provider said it would pay the equivalent of the deferred 2019 final dividend as an extra payment along with this year's interim dividend.
FirstGroup soared 5 percent and Go-Ahead Group shares rose over 2 percent. The public transport giants have welcomed the announcement from the Department for Transport regarding extended funding of bus services in England, to be provided by the U.K. government.
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