Europe close: Shares edge higher despite soft Chinese data

European shares edged higher at the start of the week despite the hit to investor sentiment from weaker-than-expected readings for Chinese fixed asset investment and retail sales that prompted a surprise interest rate cut by the country's central bank.

Yet analysts sounded a skeptical note in response to the actions of the People's Bank of China.

"China’s economy is suffering from ongoing Covid lockdowns and a fragile property market. Developers reported lower rates of investment into new building projects whilst sales of new homes dived by 31% in the year to end-July," said Hargreaves Lansdown fund manager Steve Clayton.

The pan-European STOXX 600 index was up 0.34% at 442.35, with all the main regional indices higher alongside by a similar percentage.

Basic Resources and Oil and Gas bore the brunt of selling within the Stoxx 600.

Meanwhile, euro/dollar came off by 0.83% to 1.0174 and front-dated Brent crude oil futures fell 3.9% to $94.22 a barrel on the ICE. Copper futures also retreated.

In equity news, AstraZeneca gained after the drugmaker said its Enhurtu cancer drug, developed with Japan's Daiichi Sankyo, delayed the progression of a form of advanced breast cancer in previously treated patients.

HelloFresh surged 13% after the German meal-kit maker reported better-than-expected quarterly results.

Scandinavian airline SAS shares took off after the company secured bridge financing through bankruptcy protection proceedings.