European stocks edge higher in cautious trading

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Sept 2 (Reuters) – European stocks edged higher on Thursday supported by oil and chemical companies, while doubts over monetary policy outlook and signs of slowing global growth limited gains across the board.

The pan-European STOXX 600 index was up 0.1% by 0713 GMT after Asian shares slid as concerns grew over the Chinese economy after a run of soft data.

Investors refrained from making big bets ahead of the U.S. jobs data on Friday that could influence the Federal Reserve’s thinking over policy tightening.

The European Central Bank is set to meet next week, with some of the hawkish members recently calling out the bank to pare back its pandemic-era bond purchases.

Among individual stocks, Swedish Orphan Biovitrum soared 24.2% after U.S. venture capital firm Advent International and Aurora Investment offered to buy the drugmaker in a deal valued about 69.4 billion Swedish crowns ($8 billion).

Miner BHP Group fell 5% on ex-dividend trading, weighing on the UK’s blue-chip FTSE 100.

British engineering firm Melrose Industries gained 4.6% as it reported a first-half profit. (Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)