Europe: Shares rise on upbeat China data; Renault jumps

[BENGALURU] European shares joined a global rally on Wednesday 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 7.14am GMT, holding near a three-month high.

Sectors exposed to the health of China's economy such as oil and 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 eurozone business activity for May is due at 8am GMT.

Among individual stocks, Renault jumped 7.7 per cent after it finalised a 5 billion euro (S$7.82 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