(Reuters) – European shares joined the global rally on Wednesday, as signs of improved service sector activity in China overshadowed concerns over trade tension between China and the United States and widespread protests in the United States.
The Stoxx 600 index of European shares increased 0.8 percent by 0714 GMT, stable near the highest level in three months.
Sectors exposed to the durability of the Chinese economy, such as oil and gas and the auto industry, rose more than 1 percent after a survey showed that China’s service sector returned to growth in May, although employment and external demand remained weak.
Renault (PA: RENA) shares jumped 7.7 percent after completing a five billion euro ($ 5.60 billion) loan agreement from the French government, and Goldman Sachs raised the share’s recommendation to “buy”.
French insurance company AXA shares rose 5 percent after the disclosure of a plan to cut dividends by half due to the Corona virus crisis, but added that it might suggest additional payments to shareholders in the fourth quarter as conditions improved.