*

Deutsche Bank falls as it flags provision on Postbank

litigation

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Atos jumps after French state's offer for key units

*

SBB offshoot Public Property Invest slides in trading

debut

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Spain's PM Pedro Sanchez will announce decision on

resignation

(Updated at 0837 GMT)

By Ankika Biswas

April 29 (Reuters) - European shares touched a two-week

high on Monday, extending last week's strong run, with euro zone

economic data and a U.S. policy decision in focus.

The pan-European STOXX 600 was up 0.3%, as of 0837

GMT, after logging its first weekly gain in four on Friday.

The STOXX 600 lost some steam in April after five straight

months of gains amid the impact of record-high interest rates,

ongoing Middle East tensions and the European Central Bank's

policy outlook.

Investors await euro zone inflation data on Tuesday and the

U.S. Federal Reserve's much-anticipated May interest rate

decision on Wednesday, while keeping a track of the ongoing

earnings season.

"You should start to see the improvement start to roll

through the next (earnings) season if rate cuts come through ...

there's far more emphasis from an investor's perspective on the

outlook," Morningstar European market strategist Michael Field

said.

Basic resources were among the top sectoral gainers,

up 0.8% at a 13-month high, with Anglo American climbing

1.7% after Reuters reported BHP Group ( BHP ) is considering

making an improved offer for the miner.

Philips surged 33.8% as the Dutch firm announced a

sweeping settlement of $1.1 billion for claims over its recalled

breathing devices in the United States, that will end the

uncertainty that had slashed its market value in the past three

years.

With Philips' shares touching a more than two-year high, the

healthcare sector rose to an over one-month high.

Atos jumped 14.9% as the French government made an

offer to buy out some of IT firm's key units.

Deutsche Bank dropped 5% as the German lender

will make a legal provision over a litigation regarding its

takeover of Postbank that will hurt its second-quarter and

full-year profitability.

Porsche lost 2.8% following a 30% drop in

first-quarter operating profit.

Norway's Public Property Invest, partly owned by

indebted Swedish real estate group SBB, lost 7% on its

Euronext Oslo market debut.

Spain's Prime Minister Pedro Sanchez will finalise a

decision in the morning whether he plans to stay on or quit the

premiership. The regional benchmark stocks index was

down 0.2%.