Europe open: Shares rally after Friday fall; Dechra disappoints

European stocks opened higher on Monday, bouncing back from last week's disappointing US payroll data.

The pan-European Stoxx 600 index was up 0.46%, rallying after falls on the back of weaker-than-expected US jobs data on Friday.

"Friday’s disappointing US payrolls report was a wake-up call if one were needed that the slow road to economic recovery from the pandemic is unlikely to be an easy one, and is likely to take a few awkward twists and turns along the way," said CMC Markets analyst Michael Hewson.

"As we look ahead to the new week the main focus now shifts towards the European Central Bank rate meeting on Thursday, with some questions being increasingly raised about the pace and sustainability of its bond buying program, after CPI jumped to a 10-year high of 3% last week."

"Nonetheless it’s unlikely to mark a change in tone or stance by the ECB given the current fragile nature of the European recovery story, which is already starting to show signs of slowing, with concerns over a slowdown in China also likely to gain traction this week as well."

Tech stocks were up, with shares in chip equipment maker ASML, Dutch tech investor Prosus and Nordic Semiconductor all higher.

French engineering group Spie fell 4.2% after it confirmed it has submitted a non-binding offer to buy Equans, the newly created services unit of French energy group Engie.

Veterinary drugs maker Dechra Pharmaceuticals fell to the bottom of the Stoxx, down 9.5%, despite reporting a rise in full-year profits and lifting its dividend.