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LONDON, July 16 (Reuters) - Strong industrials and pharma stocks helped European shares make hesitant gains on Monday while data showing slowing economic growth from China kept a lid on the market's progress.
The pan-European STOXX 600 inched up 0.2 percent by 0725 GMT, in line with Germany's DAX, which is heavily exposed to China.
Basic resources and autos were among the worst-performing sectors as they are both reliant on solid Chinese growth, but industrials merger speculation helped outweigh the overall negative impact of the data.
The top European mover was drugmaker Indivior, jumping 26 percent after a U.S. court blocked India's Dr. Reddy's Laboratories from selling generic versions of its bestselling opioid addiction treatment in the U.S.
Elevator firm Kone drove gains among industrials, with a 1.7 percent gain after a report that the Finnish company and Germany's Thyssenkrupp had held merger talks on their elevator operations. Thyssenkrupp rose 0.8 percent.
Shares in French technology consultancy firm Altran climbed 3.8 percent after Friday's 30 percent plunge on the discovery of forged orders at its recently acquired U.S. business Aricent.
Broker recommendations also moved some stocks.
French publisher Lagardere rose 4.2 percent after Morgan Stanley upgraded it to overweight, while British software firm Micro Focus fell 4 percent after a Credit Suisse downgrade to underweight.
In the UK market, Debenhams shares fell 5.6 percent after a Sunday Times report said credit insurers had cut cover for suppliers to the department store, which has issued three profit warnings this year.
(Reporting by Helen Reid, Editing by Kit Rees)