STOXX 600 up 0.2
Euro zone PMI at 48.9 in September
Commerzbank falls as German government retains 12 stake

Sept 23 Reuters European shares edged higher on Monday, though gains were capped by caution as investors tread carefully in anticipation of a wave of crucial economic data from the region this week.

The panEuropean STOXX 600 index was up 0.2 at 515.5 points. The benchmark posted its worst day in more than a month on Friday.

Business activity in the euro zone contracted unexpectedly in September, according to data released earlier in the day. The bloc39;s PMI sank to 48.9 from 51 in August.

The downturn appeared broadbased with Germany, Europe39;s largest economy, seeing its decline deepen while France the currency union39;s second biggest returned to contraction following August39;s Olympics boost.

Germany39;s DAX edged 0.3 higher after PMI figures showed that business activity contracted in September at its sharpest pace in seven months.

France39;s CAC 40 lost 0.3 after data signalled its services sector contracted sharply in September.

British flash PMI figures for September are expected at 0830 GMT.

Board members from the European Central Bank are set to speak through the week, with Frank Elderson and Piero Cipollone speaking later in the day.

The euphoria from the U.S. Federal Reserve39;s jumbo rate cut, which had sparked a market rally globally, is fading as investors shift their focus to potential further cuts.

Attention is on the core personal…