Europe open: Stocks follow Wall Street higher ahead of data-heavy week

European stocks advanced on Monday ahead of a busy week for economic data, including growth indicators from China and all-important inflation stats from the US.

The Stoxx 600 index was up 0.7% at 446.57 in morning trade, with decent gains across all major European indices early on. The index rose 3.2% over the past two weeks after hitting a ten-month low of 429.58 on 27 October.

Stocks were helped by a tech-driven rally on Wall Street on Friday, with the Nasdaq surged 2.05% – its biggest one-day gain since May – after an easing in US Treasury yields.

This week is set to be a busy one when it comest to economic data, though the focus will be US inflation stats due on Tuesday and Chinese retail sales and industrial production scheduled for Wednesday morning.

In the US, core consumer price inflation is expected to have held steady at 4.1% in October.

"The uncertainty regarding when the Fed will be done hiking the rates is killing everyone, but even the Fed itself doesn’t know when tightening will/should end. It will depend on crucial economic data, like inflation, jobs, and growth figures," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Meanwhile,Stephen Innes, managing partner at SPI Asset Management, said traders are "placing bets for weaker activity data" from China this week.

"The upcoming release of China's October activity data on Wednesday is anticipated with a cautious outlook. Given disappointing PMIs and a more substantial decline in exports than initially forecasted, traders tend to believe that economic activity likely softened from September to October," he said.

Also on the agenda in the coming days will be UK and EU unemployment, Eurozone GDP and Eurozone consumer sentiment figures on Tuesday, and UK inflation and US retail sales on Wednesday.

Novo Nordisk jumps

Novo Nordisk shares were up 3% in Copenhagen after a Danish pharma giant said its weight-loss drug Wegovy reduced the risk of death by 18% in a trial, cutting the risk of cardiovascular events for people with obesity and heart disease.

Phoenix Group was a big riser on the Stoxx 600, rising 7.5% after the UK-listed insurer said it was lifting its full-year cash generation targets after completing the funds merger of its Standard Life and Phoenix Life businesses into a single entity.

Also higher was British Land, jumping nearly 6% after saying that estimated rental value growth should come in at the top end of guidance this year.