European shares gained on Monday as further evidence of weak growth in China supported hopes of a policy stimulus, while Generali jumped after Delfin was authorized to hold an over 10% stake in Italy's biggest insurer.
The pan-European STOXX 600 index was up 0.2% by 7:03 GMT, kicking off the second half of the year on positive note after notching solid gains in the first six months.
Miners gained 1.1% as most metal prices rose on hopes that China's government will deliver a stronger economic stimulus package after a survey showed the country's factory activity slowed in June.
Shares of Assicurazioni Generali jumped 4.3% after Italy's insurance regulator said it had authorized investor Delfin to hold a stake of over 10% in the company.
Tesla's Frankfurst-listed shares advanced 4.9% after the EV maker beat second-quarter delivery estimates.
Investor focus was on Purchasing Managers' Index (PMI) data from the euro zone due later in the day.
(Reporting by Amruta Khandekar; Editing by Nivedita Bhattacharjee)