Global Market: European stocks edge up; Schneider plunges after PTC deal

European shares edged higher on Monday, recovering some of last week's losses, although French equities came under pressure as concerns over the country's fiscal position weighed on sentiment, according to a report by Reuters.

The pan-European STOXX 600 index rose 0.2% to 632.42 points by 0720 GMT, with most major regional benchmarks trading flat to higher, as per the report. The index had posted its biggest weekly decline in a month last week as rising bond yields heightened concerns over inflation and deteriorating fiscal positions.

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France's CAC 40 was among the weakest major European benchmarks, falling 0.8%, while the euro slipped to a 17-month low. The report stated that investors were increasingly concerned about France's debt burden and political gridlock ahead of next year's presidential election.

Shares of Schneider Electric fell 7.2% after the French engineering company announced its $22.6 billion acquisition of U.S. software company PTC, its largest deal to date. The decline in Schneider shares added to pressure on the French benchmark, Reuters said.

Spanish stocks were largely steady after Prime Minister Pedro Sanchez called a snap election for November 29, adding another source of political uncertainty for investors.

Mining stocks rose 0.5% as precious-metal prices advanced. According to Reuters, softer-than-expected U.S. jobs data reinforced expectations that the Federal Reserve will leave interest rates unchanged this month.

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Investors were also assessing the impact of elevated borrowing costs, rising government bond yields and persistent inflation risks on European equities. The report stated that the combination of fiscal concerns and uncertainty over the global interest-rate outlook has increased pressure on markets.

European stocks began the week cautiously, with investors weighing bargain-hunting after last week's losses against concerns over inflation, government finances and political uncertainty across the region.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)