Europe open: Shares up despite weak China data; Generali gains

European shares opened higher on Monday despite further evidence that China’s economic recovery was stalling.

The pan-European Stoxx 600 index was up 0.41% in early deals with all regional markets making a positive start to the week.

Activity in China’s manufacturing sector slowed in June, according to data released on Monday. The Caixin/S&P Global manufacturing purchasing managers’ index fell to 50.5 from 50.9 in May, although this was above consensus expectations for a reading of 50.0.

A reading above 50.0 signals expansion, while a reading below indicates contraction.

Wang Zhe, senior economist at Caixin Insight Group, said: "A slew of recent economic data suggests that China’s recovery has yet to find a stable footing, as prominent issues including a lack of internal growth drivers, weak demand and dimming prospects remain.

In equity news, shares in Generali were up 5% after Delfin was authorized to hold a more-than 10% stake in Italy's biggest insurer.

Tesla's Frankfurst-listed shares were also higher after the electric car maker beat second-quarter delivery estimates.

AstraZeneca shares fell as results from a high-level study of a new cancer medicine raised worries the drug might not work as well as anticipated.

Reporting by Frank Prenesti for Sharecast.com