Europe open: Shares lower on China data; Focus on Sino-US trade talks

(Sharecast News) - European shares opened slightly lower on Monday as China fell further into deflationary territory and producer prices in the world's biggest economy recorded their deepest contraction in almost two years.

The pan-regional Stoxx 600 index was down 0.06% in early deals with major bourses lower. Germany's DAX was down 0.3% and Britain's FTSE 100 was flat. Eyes were also on a meeting in London between US Treasury Secretary Scott Bessent and Chinese officials aimed at resolving the trade war between the two nations.

China's CPI index fell by 0.1% in May on an annualised basis and has now been in negative territory since February, when it fell 0.7% year-on-year, follows by 0.1% declines in March and April.

Meanwhile, the country's producer price index fell 3.3% in May year on year and compared with a 2.7% decline in April, according to data from the National Bureau of Statistics.

In equity news, Alphawave shares surged by more than 20% after US chipmaker Qualcomm agreed to acquire the semiconductor company for about $2.4bn.

Reporting by Frank Prenesti for Sharecast.com