Europe open: Shares edge higher on Asia gains, US stimulus hopes

European stocks started the week higher, tracking gains in Asia overnight and still driven by US stimulus hopes, although the prospect of tighter coronavirus restrictions in the UK dampened London sentiment.

The pan-European Stoxx 600 index was up 0.23%, with Germany’s DAX and France’s CAC 40 both creeping higher, while London’s FTSE 100 slipped. US futures were all marginally higher.

Market watchers were still eyeing a second stimulus package in the US. Senate Republicans as well as House Democrats objected to the new offer from the Trump administration over the weekend.

In the UK, new local lockdown rules are set to be introduced for England, with Liverpool expected to face the toughest restrictions, although the government faced a rebellion from local councils over the level of financial assistance that would be provided to hardest-hit areas.

KPN shares soared by 9% after Bloomberg reported that private-equity group EQT was considering a takeover offer for the Dutch telecom.

Shares in gambling group GVC Holdings fell as the company said profits would fall by £40m on the back of four new licences in Germany under a new regime of restrictions to protect punters.

Aveva shares fell as the software maker said interim revenues would be in line with expectations, but lower than last year.