European shares touch two-week high; inflation data, Fed policy in focus

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April 29 (Reuters) - European shares climbed to a two-week high on Monday, extending strong gains from last week, with investors awaiting economic data and the Federal Reserve's policy decision, while Deutsche Bank dropped on a provision for Postbank litigation.

The pan-European STOXX 600 was up 0.3%, as of 0718 GMT GMT, after logging its first weekly gain in four on Friday.

Basic resources led sectoral gains, with shares of Anglo American climbing 2.3% after Reuters reported BHP Group is considering making an improved offer for the miner.

Atos jumped 12.6% as the French government made an offer to buy out some of its key units.

Deutsche Bank dropped nearly 4% as the German lender will make a legal provision over a litigation regarding its takeover of Postbank that will hurt its second-quarter and full-year profitability.

Investors await the euro zone's inflation data and the Fed's much-anticipated May interest rate decision over the week's course for clues on the global policy outlook.

Also on investors' radar, Spain's Prime Minister Pedro Sanchez will finalise a decision at noon whether he plans to stay on or quit the premiership.

(Reporting by Ankika Biswas in Bengaluru; Editing by Sherry Jacob-Phillips)