Europe: Shares gain as Trump plans to reopen US economy

[BENGALURU] European shares jumped on Friday, clawing back weekly declines as financial markets globally drew comfort from US President Donald Trump's plans for a gradual re-opening of the US economy and reports of a potential drug to treat Covid-19.

The pan-European Stoxx 600 index was up 2.5 per cent at 0712 GMT, shrugging off data showing China suffered its worst economic contraction in almost three decades as the pandemic crushed business activity.

All the major European sub-sectors were trading higher, with mining stocks surging 4.1 per cent on the back of higher commodity prices.

The benchmark Stoxx 600 has now recovered about 24 per cent since hitting an eight-year low in March, powered by a raft of global stimulus and tentative signs the pandemic was peaking in the worst-hit parts of the continent.

Lifting the mood further on Friday, a report detailed encouraging partial data from trials of US drugmaker Gilead Sciences Inc's experimental drug remdesivir in severe Covid-19 patients.

Nokia jumped 4 per cent on a report that it was working with an investment bank to defend itself from a hostile takeover.

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REUTERS