(Bloomberg) -- European equities advanced, extending last week’s gains, as investors focused on the stimulus negotiations in the U.S. and embraced improving economic data out of China.

The Stoxx Europe 600 Index gained 0.2% at the open, led by banks and miners. Suez SA climbed as much as 3.5% after the planned sale of a continental European waste-management business was said to be attracting early interest from German retail tycoon Dieter Schwarz.

Investors are optimistic that Washington can pass another round of stimulus after Treasury Secretary Steven Mnuchin said he’d listen to any proposal offered by Democrats, and Nancy Pelosi said she hopes talks with the White House will resume soon. Market participants also embraced positive data from China, with consumer inflation accelerating and factory price deflation easing in July, as the nation’s economy continued to recover from the coronavirus crisis.

“The main focus for markets is whether the U.S. can agree on the next round of fiscal stimulus,” said Benjamin Jones, a senior multi-asset strategist at State Street Bank. “News over the weekend boosts the chances that another round is agreed relatively quickly.”

After President Donald Trump signed four executive orders to maintain some assistance, Jones expects “people to see a lot of this as political posturing, but something will get done soon.”

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