Europe open: Shares up with eyes on rates; Philips surges on payout

European shares opened higher on Monday as investors eyed central bank rate decisions this week, while shares in Philips and Atos were in focus.

The pan-regional Stoxx 600 index was up 0.32% at 509.63. The US Federal Reserve will make a rate announcement on Wednesday after another higher-than-expected inflation reading last Friday. Analysts expect no change from the central bank.

‘’Sentiment is upbeat at the start of the week, fuelled by relief that inflationary pressures in the US aren’t as bad as feared, and hopes return that a ceasefire could be negotiated in the Middle East," said Hargreaves Lansdown analyst Susannah Streeter.

In equity news, shares in Philips surged by more than 30% as the Dutch medical devices maker said it had agreed to pay $1.1bn in a settlement over a ventilator recall - much less than original market fears of $2-3bn.

France’s Atos rose 18% at the open after confirming the French government had made an offer for three strategically important parts of the business, advanced computing, critical systems and cyber products.

JD Sports Fashion was down after Barclays cut its rating to 'equal weight' from 'overweight' and reduced that target price to 140p from 165p.

Deutsche Bank fell as the German lender said it would take a hit from a legal provision over a litigation regarding its takeover of Postbank.

Reporting by Frank Prenesti for Sharecast.com