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London - European stock markets nudged higher on Monday, as investors returning to action after the festive break were met with upbeat eurozone data, which boosted the euro.
London's FTSE 100 index of leading companies added 0.02% to stand at 6 731.80 points in midday trade.
Frankfurt's DAX 30 index gained 0.20% to 9 453.61 points and in Paris CAC 40 firmed 0.07% to 4 250.44 compared with Friday's close.
Market strategist Brenda Kelly at trading firm IG said: "Equity index moves are reflecting the post-party deflated mood ... and are trading flat to ever-so-slightly higher as traders return to their desks this week."
Contraction
Investor sentiment won a partial boost as eurozone data appeared to confirm an improvement in the economy after earlier figures had stoked concern about the outlook.
The Composite Purchasing Managers' Index compiled by Markit Economics, for both services and manufacturing activity, rose to 52.1 points in December from 51.7 in November.
The reading was in line with the first flash estimate and held above the key 50-points boom-or-bust line.
However, France registered ongoing contraction in December.
"Services PMI confirm a picture of slow but steady recovery for the eurozone as a whole," said Marie Diron, senior economic adviser at EY Eurozone Forecast.
"However, the contrast between countries is stark and a source of concern."
Catalysts
Later this week investors will switch attention to interest rate decisions from the Bank of England and the European Central Bank.
Both institutions are widely expected to leave their benchmark interest rates at record-lows of 0.50% and 0.25%.
Markets will on Friday focus on the key US non-farm payrolls data for the latest update on the health of the world's biggest economy.
"Trading volumes should pick up significantly this week, as traders return to their desks following the festive period and the number of potential catalysts also rises substantially," said analyst Craig Erlam at traders Alpari.
"Volumes over the last couple of weeks have been very low, which is not unusual at this time of year, as traders opt to spend time with family instead of in front of their monitors."
