European shares rebound after last week's selloff; French stocks lag

European shares edged higher on Monday, recouping some of last week's losses, while French equities came under pressure from fiscal concerns and losses in Schneider Electric following its $22.6 billion acquisition of US software company PTC.

The pan-European STOXX 600 .STOXX gained 0.2% to 632.42 points by 0720 GMT, with most major regional indexes trading flat to higher. The index was coming off its biggest weekly loss in a month as surging bond yields fuelled concerns over inflation and worsening fiscal outlooks.

France's CAC 40 .FCHI fell 0.8%, while the euro slid to a 17-month low as investors worried about the country's debt burden and political gridlock ahead of next year's presidential election.

Shares of Schneider Electric SCHN.PA dropped 7.2% after the French engineering company struck its biggest deal ever.

Spanish stocks .IBEX were largely steady after Prime Minister Pedro Sanchez called a snap election for November 29.

Mining stocks .SXPP rose 0.5% as precious-metal prices advanced after softer-than-expected US jobs data reinforced expectations that the Federal Reserve will leave interest rates unchanged this month.

-Reporting by Medha Singh in Bengaluru; Editing by Nivedita Bhattacharjee/Reuters