European stocks turn higher as Wall Street open approaches

European stocks turn higher as Wall Street open approaches

European stocks on Monday turned higher in afternoon trade, led by pharmaceutical and food producers.

After losing 2.95% last week, the Stoxx Europe 600 SXXP, +0.38%  increased 0.52% to 382.19.

The German DAX DAX, +0.26%  added 0.51% to 12073.79, the French CAC 40 PX1, +0.18%   rose 0.42% to 5511.33 and the U.K. FTSE 100 UKX, +0.38%  rose 0.41% to 7184.63.

After a 372-point burst in the Dow Jones Industrial Average DJIA, -0.23%   on Friday, U.S. stock futures ES00, -0.36%   declined, as Bloomberg News reported China negotiators were trying to limit scope of talks. Chinese officials haven’t responded to the report.

The overall economic backdrop in Europe continues to be a concern. Germany on Monday reported a 0.6% drop in factory orders in August. That was worse than the 0.4% gain expected in a FactSet-compiled economist poll.

Building materials supplier SIG SHI, -15.31%   slumped 16% after saying a deterioration in U.K. and German trading conditions has “accelerated.”

Osram Licht OSR, +2.24%  shares fell over 4% after ams AMS, +0.18%  said it didn’t get the necessary shareholder approval for its takeover bid to succeed. A rival consortium of Advent International and Bain Capital is trying to buy the German company.

Ams shares dropped 3% in Swiss trade.

“As it stands, we see risks that the Osram share will retreat towards its pre-M&A bids levels unless new announcements are made re a potential new offer/intention of offer,” said analysts at Morgan Stanley.

Bayer BAYN, +2.33%  shares rose 1.4% as Handelsblatt reported a U.S. trial relating to the herbicide Roundup has been postponed until next year, which the newspaper said was a sign the company was pursuing settlements.

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