Europe midday: Stocks waver as oil slips and investors look for fresh catalysts

European stocks wavered on Monday amid lower oil prices as investors looked for fresh catalysts at the start of a shortened trading week.

At midday, the benchmark Stoxx Europe 600 index was down 0.1%, Germany’s DAX was 0.5% higher and France’s CAC 40 was 0.2% weaker.

Stocks in Asia ended mostly higher, with the Shanghai Composite the standout gainer after Chinese policy makers loosened controls on margin lending.

Meanwhile, oil prices were in the red after data from driller Baker Hughes showed US energy companies last week added one oil rig to 387 following three months of cuts.

West Texas Intermediate was down 1.3% to $38.92 a barrel, but Brent crude was off lows, down just 0.1% to $41.17.

The Stoxx 600 oil and gas index fell 1.4%, while the corresponding sub-index for basic resources was off 1.6% as copper prices slipped.

London Capital Group’s Brenda Kelly said the Federal Reserve’s softer tightening bias last week has helped to underpin risk appetite, with the DAX now through the key 10,000 level and posting the biggest gains on Monday.

“For the most part, we can likely expect a quiet trading day while compared to the trading sessions of the past week or two but will ramp up tomorrow as we look towards Eurozone PMI and UK CPI,” she said.

In corporate news, Telecom Italia was in the black after it confirmed that chief executive Marco Patuano was set to leave the company.

Bayer was also on the front foot after Reuters cited people familiar with the matter as saying that seed producer Monsanto had approached the company to express interest in its crop science unit, including a potential acquisition worth more than $30bn.

French insurer AXA was firmer after it said chairman and chief executive Henri de Castries will step down in September after nearly 17 years at the helm.

London-listed pharmaceuticals group Shire racked up solid gains as Exane BNP Paribas said the stock looked too cheap following its decline since the announcement of the Baxalta deal. The bank said it was selling its position in Roche and switching into Shire.