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Germany Feb industrial production rises 2.1
STOXX up 0.2

April 8 Reuters European shares edged up on Monday, led by Germany39;s DAX, after strong industrial production data from the region39;s largest economy, though caution remained ahead of the European Central Bank39;s policy decision later in the week.

The STOXX 600 index was up 0.2 by 0845, with Germany39;s DAX marginally outperforming the broader continent with a 0.5 gain.

Data from the region39;s manufacturing powerhouse showed industrial production rose more than expected in February, helped by the performance of the construction industry.

Cyclical sectors such as basic resources automobiles and industrial goods and services gained between 0.4 and 1.3.

However, analysts stuck to a cautious tone.

As much as today39;s industrial data is a balm for the German economy, this is not yet the start of a significant recovery, analysts at ING bank said.

Still, somewhat lower interest rates, anticipation of upcoming European Central Bank rate cuts, lower gas and electricity prices, and resilience of the U.S. economy should bring more relief to German industry over the coming months.

Germany39;s 10year government bond yield hit a twoandahalfweek high, ahead of the ECB39;s monetary policy meet on Thursday, against the backdrop of global nervousness on the timing of interest rate cuts. GVDEUR

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