European shares inched higher on Monday, tracking gains in Asian markets on encouraging factory output and retail sales data from China, which provided some respite from worries about slowing global growth.

The upbeat data showed that the world's No.2 economy may be stabilising, but economic growth slowing to its weakest pace in at least 27 years had investors betting that Beijing will continue to roll out more stimulus.

After breaking a five-week winning streak to end last week 0.8 per cent lower, the pan-region benchmark index rose 0.4 per cent by 0709 GMT.

Trade-sensitive German shares outperformed, rising 0.7 per cent on broad-based gains after a senior US official said the US government may approve licences for companies to re-start new sales to blacklisted Chinese telecoms equipment maker Huawei in as little as two weeks.

Markets took it as a sign that President Donald Trump's recent effort to ease restrictions on the Chinese company could move forward quickly.

German chipmaker Infineon and peers ASM and STMicroelectronics rose between 0.9 per cent and 1.5 per cent.