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Bayer slumps after $2.1 billion Roundup verdict

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RWE rises as Elliott discloses stake, calls for buyback

increase

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German growth edges up in March, according to PMI data

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French private sector output contracts further in March,

PMI

data shows

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STOXX 600 up 0.4%

(Adds comment, details; updates prices)

By Medha Singh

March 24 (Reuters) - European shares rose on Monday as

data showed euro zone business activity grew at its fastest pace

in seven months in March, lifting sentiment, while investors

awaited more clarity on U.S. tariffs.

The pan-European STOXX 600 was 0.4% higher by 0908

GMT as data showed Germany's manufacturing production increased

for the first time in almost two years.

In a separate survey, France's flash purchasing managers

index (PMI) indicated business activity contracted for a seventh

consecutive month in March, although less than economists had

forecast.

The STOXX 600 index climbed last week after two consecutive

weekly losses as Germany gave the final green light to a massive

surge in borrowing to spur growth in the region's largest

economy.

"The trillion-euro question is whether Germany will use the

sugar rush recovery to implement much-needed reforms or whether

the stronger growth will actually make it feel less pressing and

politically more difficult," Deutsche Bank said in a note.

"We will probably see the positive growth impacts before we

know if they will fail to do the reforms. So momentum still

remains in the German risk trade for now in my opinion."

Germany's fiscal boost, along with U.S. President Donald

Trump's trade war on multiple fronts has prompted economists to

rein in their U.S. growth forecasts, making European equities

more attractive.

The STOXX 600 has risen 8.3% this year compared with a 3.6%

drop in the U.S. benchmark S&P 500 index. Germany's

benchmark index outperformed most of its regional peers

with its 15.6% rise so far in 2025.

Mining stocks led gains among sectors on Monday,

firming 1.9% on higher copper prices. J.P.Morgan also double

upgraded the European mining sector to "overweight" from

"underweight".

Investors are awaiting details on Trump's promise to slap

reciprocal levies on U.S. trading partners on April 2 as his

changing tariff threats have left nations and businesses

uncertain of what to expect next.

Among stocks, Bayer slid 6.6% after the seeds and

pesticides maker was ordered by a U.S. jury to pay about $2.1

billion to a plaintiff who claimed the company's Roundup weed

killer caused his cancer.

RWE shares gained 2.8% as activist investor

Elliott disclosed a stake in Germany's biggest utility and urged

the firm to increase its 1.5 billion euro ($1.6 billion) share

buyback programme.