European shares rise on upbeat China data; Renault jumps

Sectors exposed to the health of China’s economy such as oil & gas and automakers rose more than 1 per cent after 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. — Reuters pic
Sectors exposed to the health of China’s economy such as oil & gas and automakers rose more than 1 per cent after 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. — Reuters pic

NEW YORK, June 3 — European shares joined a global rally today as signs of a pickup in China’s services activity offset concerns about Sino-US trade tensions and widespread civil unrest in the United States.

The pan-European STOXX 600 rose 0.8 per cent by 0714 GMT, holding near a three-month high.

Sectors exposed to the health of China’s economy such as oil & gas and automakers rose more than 1 per cent after 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 0900 GMT.

Among individual stocks, Renault SA jumped 7.7 per cent after it finalised a €5 billion (RM23.9 billion) loan from with the French government and Goldman Sachs upgraded its stock to “buy”.

French insurer AXA rose 5 per cent after revealing plans to halve its dividend amid the coronavirus crisis, while adding that it could propose an additional fourth-quarter shareholder payment if conditions improved. — Reuters

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