Europe open: Stocks gain ahead of manufacturing data

At 0845 BST, the benchmark Stoxx Europe 600 index was 0.2% firmer, Germany’s DAX was up 0.6% and France’s CAC 40 was ahead 0.4%.

The S&P Global May manufacturing PMI for the eurozone is due out at 0900 BST.

Market participants were also keeping an eye on oil prices. Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "On commodity markets, the oil price has caught another rollercoaster ride, dipping sharply after a rapid climb upwards as expectations of supply in the market fluctuate. Just a day after surging to above $123 Brent crude following the EU’s compromise deal to block more than two thirds of Russian oil imports, the benchmark has careered downwards to hit $115 dollars a barrel, falling 5.6%."

She said the slide comes amid speculation that OPEC could eject Russia temporarily, potentially setting the scene for other big producers to pump more oil.

"While there is no official policy yet laid out, the price rise is a reaction to reports that some members are looking to ramp up production and could use more of their spare capacity if Russia falls out of the agreed quotas being set. However, higher oil prices have boosted Gulf economies, with Saudi Arabia’s GDP surging by 9.6% in the first quarter, so there is likely to still be reticence about turning on the taps too freely."

Earlier, figures from Destatis showed that German retail sales fell more than expected in April amid higher prices. Retail sales fell 5.4% on the month versus expectations for no change.

In equity markets, DWS slid as the German asset manager’s chief executive resigned just hours after police raided its offices in connection with a probe into allegations over greenwashing.