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European shares rise on upbeat China data; Renault jumps

The pan-European STOXX 600 rose 1 per cent, hovering near three-month highs.

Reuters|
Last Updated: Jun 03, 2020, 01.34 PM IST
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European shares
A survey showed China's services sector returned to growth in May for the first time since January, even though employment and overseas demand remained weak.
European shares joined a global rally on Wednesday as signs of a pickup in China's services sector activity offset concerns about Sino-US trade tensions and widespread civil unrest in the United States.

The pan-European STOXX 600 rose 1 per cent, hovering near three-month highs, led by gains in insurers, automakers , banks and oil & gas sectors.

A survey showed China's services sector returned to growth in May for the first time since January, even though employment and overseas demand remained weak.

Final data on euro zone business activity for May is due at 0800 GMT.

Massive stimulus from major central banks, hopes of a COVID-19 vaccine and improving economic data have helped the STOXX 600 recover about 35 per cent from March lows, leaving it a little over 16 per cent below February highs.

Among individual stocks, Renault SA jumped 7.6 per cent after it finalised a 5 billion euro ($5.60 billion) loan from with the French government and Goldman Sachs upgraded its stock to "buy".

French insurer AXA rose 6.1 per cent after revealing plans to halve its dividend amid the coronavirus crisis, but said it could propose an additional fourth-quarter shareholder payment if conditions improved.

Lufthansa gained 1.7 per cent as it vowed to step up restructuring measures after posting a first-quarter net loss of 2.1 billion euros ($2.35 billion).

French luxury goods group LVMH edged up 0.4 per cent after fashion trade publication WWD reported that its $16.2 billion takeover of Tiffany & Co is looking less certain.
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