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London - European stock markets posted gains on Monday, with London closed for a bank holiday, as investors awaited important corporate results and economic data due out this week.
In midday deals Frankfurt's DAX 30 index rose 1.38% to 11 612.75 points, and the CAC 40 in Paris added 1.03% to 5 098.34 compared with Thursday's close.
Madrid's Ibex-35 gained 0.96% and Milan's FTSE Mib advanced 1.07% amid what most analysts had expected to be modestly higher trading in Europe after the long May 1 weekend.
Markets rebounded into the black from early losses awaiting the heavy week of company results announcements and publication of new economic indicators.
Markit Economics closely-watched Purchasing Managers Index (PMI) released Monday showed eurozone manufacturing continued to expand in April.
The final eurozone manufacturing PMI came in at 52.0, up from the initial estimate of 51.9 but down from the 52.2 in March.
The index, which is calculated from surveys of business, is seen as a reliable indicator of economic trends. A score above 50 indicates expansion.
Traders are also looking ahead to US industrial and employment statistics for April due later this week, following disappointing first quarter growth figures revealed last Wednesday that sent markets falling.
Also present in traders' minds are on-going negotiations between Greece and its international creditors to free up 7.2bn in bailout money Athens sorely needs to run the government and honour looming debt repayments.
'No more liquidity'
The fractious talks to unblock the funds have stalled amid Athens' resistance to accept tough reforms creditors demand, raising the spectre of a potential Greek default and unruly euro exit - or "Grexit" - should no deal be concluded.
On Monday Greek officials requested creditors unblock a portion of those funds based on progress already made towards an overall accord, saying "there is no more liquidity in the Greek economy".
The plea was made as Athens scrambles to come up with a total of €1bn in loan repayments due to the IMF by mid-May.
"We continue to see a 70% probability that, possibly with quite some political noise in Athens in the meantime, Greece will strike a deal in the end and stay in the euro, with a 30% risk of Grexit," says Berenberg chief economist Holger Schmieding.
"Things may get lively in the next few days as the ECB will reportedly discuss Greece on 6 May and Eurogroup finance ministers may demand serious progress before their 11 May meeting."
That mix of factors played into the euro's renewed weakening against the dollar, dropping to $1.1131 from $1.1200 in New York late Friday.
"Another big week for the dollar as markets await the US non-farm payrolls report this Friday," Phillip Futures said in a market commentary.
"A strong labour market report will likely strengthen the dollar. Conversely, weak data is likely to push the dollar down."
Most Asian stocks posted cautious gains following Friday's stronger Wall Street finish, and with markets in Tokyo, Thailand and Malaysia shut for public holidays.
Asian markets were also buoyed by gloomy Chinese economic data that heightened expectations for more stimulus measures, after a survey of manufacturing activity recorded China's worst contraction in a year in April.
Shanghai added 0.87%, Seoul closed up 0.24% and Sydney rose 0.23%, while Hong Kong stocks ended down 0.03%.
