Europe Markets: European stocks turn higher as Wall Street open approaches

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A steel worker of Germany’s industrial conglomerate ThyssenKrupp AG stands amid sparks of raw iron from a blast furnace at Germany’s largest steel factory in Duisburg, Germany.

European stocks on Monday turned higher in afternoon trade, led by pharmaceutical and food producers.

After losing 2.95% last week, the Stoxx Europe 600 SXXP, +0.36%  increased 0.52% to 382.19.

Related: JPMorgan says it’s time to buy Europe stocks. Goldman Sachs says, not so fast

The German DAX DAX, +0.25%  added 0.51% to 12073.79, the French CAC 40 PX1, +0.19%   rose 0.42% to 5511.33 and the U.K. FTSE 100 UKX, +0.28%  rose 0.41% to 7184.63.

After a 372-point burst in the Dow Jones Industrial Average DJIA, +1.42%   on Friday, U.S. stock futures ES00, -0.25%   declined, as Bloomberg News reported China negotiators were trying to limit scope of talks. Chinese officials haven’t responded to the report.

The overall economic backdrop in Europe continues to be a concern. Germany on Monday reported a 0.6% drop in factory orders in August. That was worse than the 0.4% gain expected in a FactSet-compiled economist poll.

Building materials supplier SIG SHI, -13.56%   slumped 16% after saying a deterioration in U.K. and German trading conditions has “accelerated.”

Osram Licht OSR, +2.26%  shares fell over 4% after ams AMS, -2.84%  said it didn’t get the necessary shareholder approval for its takeover bid to succeed. A rival consortium of Advent International and Bain Capital is trying to buy the German company.

Ams shares dropped 3% in Swiss trade.

“As it stands, we see risks that the Osram share will retreat towards its pre-M&A bids levels unless new announcements are made re a potential new offer/intention of offer,” said analysts at Morgan Stanley.

Bayer BAYN, +2.86%  shares rose 1.4% as Handelsblatt reported a U.S. trial relating to the herbicide Roundup has been postponed until next year, which the newspaper said was a sign the company was pursuing settlements.