European stocks rise awaiting data-heavy week

European stock markets posted modest gains Monday, with London closed for a bank holiday and investors awaiting important corporate results and economic data this week.

In late-morning deals Frankfurt's DAX 30 index rose 0.88 percent to 11,555.10 points, and the CAC 40 in Paris added 0.32 percent to 5,062.24 compared with Thursday's close.

Madrid's Ibex-35 gained 0.40 percent and Milan's FTSE Mib inched up 0.30 percent amid what most analysts had expected to be modestly higher trading in Europe after the long May 1 weekend.

Markets swung between gains and losses awaiting the heavy week of company result announcements and publication of new economic indicators.

A closely-watched Markit Economics report Composite Purchasing Managers Output Index (PMI)released Monday showed eurozone manufacturing continuing to expand in April.

"German, French and Spanish manufacturing will be released and we could see the run of recovering data continue," says IG market strategist Stan Shamu.

Traders are also looking ahead to US industrial and employment statistics for April that will be announced later this week, following disappointing first quarter growth figures revealed last Wednesday that sent markets falling.

Also present in traders' minds are on-going negotiations between Greece and its international creditors to free up 7.2 billion ($3 billion) in bailout money Athens sorely needs to run the government and honour looming debt repayments.

The fractious talks to unblock the funds have stalled amid Athens' resistance to accept tough reforms creditors demand, raising the spectre of a potential Greek default and unruly euro exit -- or "Grexit" -- should no deal be concluded.

"We continue to see a 70% probability that, possibly with quite some political noise in Athens in the meantime, Greece will strike a deal in the end and stay in the euro, with a 30% risk of Grexit," says Berenberg chief economist Holger Schmieding.

"Things may get lively in the next few days as the ECB will reportedly discuss Greece on 6 May and Eurogroup finance ministers may demand serious progress before their 11 May meeting."

That mix of factors played into the euro's renewed weakening against the dollar, dropping to $1.1149 from $1.1200 in New York late Friday.

"Another big week for the dollar as markets await the US non-farm payrolls report this Friday," Phillip Futures said in a market commentary.

"A strong labour market report will likely strengthen the dollar. Conversely, weak data is likely to push the dollar down."

Most Asian stocks ended with cautious gains following Friday's stronger Wall Street finish, and with markets in Tokyo, Thailand and Malaysia shut for public holidays.