- Euro zone Feb producer prices expected to contract
- Credit Suisse AGM due later in the day
- L'Oreal gains on Aesop deal
- Bayer rises as U.S. judge dismisses lawsuit against co
April 4 (Reuters) - European shares rose on Tuesday as investors rebuffed concerns over surprise output cuts by the OPEC and its allies, while awaiting euro zone producer prices for more clues on the European Central Bank's (ECB) monetary tightening path.
The pan-European STOXX 600 index edged 0.2% higher after a subdued trading session on Monday as a jump in oil prices stoked fears of stubborn inflation.
Real estate and retail shares led the gains for the broader markets while oil and gas stocks continued its upswing, with the index adding 0.2% after clocking its biggest one-day gain since November on Monday.
Tech shares, however, dipped 0.1% as bond yields rose following fears of inflation emanating from OPEC+ slashing oil output by further 1.16 million barrels per day (bpd).
"The surprise production cut from OPEC+ continues to stoke concerns around inflation, with brent crude trading over $85 a barrel," Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said in a note.
"There are some outside concerns this could encroach on the $100 mark once more, which would have legitimate ramifications for monetary policy and has already led to a reduction in short positions in oil."
Oil prices rose for a second consecutive day after the surprise cut by OPEC+, with Brent and U.S. WTI crude rising more than 1% each.
Euro zone producer prices for February will be on investors' radar during the day, and are expected to show a contraction in prices in February on a monthly basis.
Euro zone consumers cut their inflation expectations in February and also took a more optimistic view on growth and unemployment, an ECB survey showed.
Investors will also closely monitor Credit Suisse's annual general meeting, where the management of the Swiss bank will face shareholders' ire for the first time after it was rescued last month by rival UBS.
L'Oreal shares inched up 0.2% after the cosmetics group struck a deal with Brazil's Natura & Co to buy Aesop, its Australian luxury brand, at an enterprise value of $2.53 billion.
"This pivot towards a more luxury and hedonistic brand suggests L'Oreal is padding out its offering to help insulate against an increasingly tough market," Lund-Yates said.
Bayer AG added 0.2% after a Delaware judge dismissed Merck lawsuit seeking to hold Bayer responsible for more talc-related liabilities stemming from its purchase of Merck's consumer care business in 2014.
Reporting by Shubham Batra and Sruthi Shankar in Bengaluru; Editing by Uttaresh Venkateshwaran and Sherry Jacob-Phillips
Source: Reuters