April 15 (Reuters) - European shares inched up on

Monday, with defence stocks among top gainers, as investors

assessed the wider implications of escalating tensions in the

Middle East, while optimism around imminent interest rate cuts

also aided sentiment.

The pan-European STOXX 600 gained 0.1%, led by the

defence sector that was up 0.6% by 0713 GMT, after

Iran launched explosive drones and missiles at Israel over the

weekend in retaliation for a suspected Israeli attack on its

consulate in Syria on April 1.

Among top movers, Temenos jumped 15.6% after the

Swiss software firm said a "special committee" formed by its

board found that accusations in a report by Hindenburg Research

were incorrect and misleading.

Ageas climbed 3.6% as France's BNP Paribas said it

had reached an agreement with China's Fosun Group to acquire its

9% stake in the Belgian insurer for around 730 million euros

($777.60 million).

Adidas rose 3.5% after brokerage Morgan Stanley

double-upgraded the German sportswear maker to "overweight" from

"underweight".

($1 = 0.9388 euros)