CORRECTED-European shares rise on upbeat China data; Renault jumps

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A logo of Renault carmaker is pictured at a dealership amid the coronavirus disease (COVID-19) outbreak in Sint-Pieters-Leeuw, Belgium May 29, 2020. REUTERS/Yves Herman

(Reuters) – European shares joined a global rally on Wednesday as signs of a pickup in China’s services sector activity offset concerns about Sino-U.S. trade tensions and widespread civil unrest in the United States.

The pan-European STOXX 600 rose 1%, hovering near three-month highs, led by gains in insurers .SXIP, automakers .SXAP, banks .SX7P and oil & gas .SXEP 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% from March lows, leaving it a little over 16% below February highs.

Among individual stocks, Renault SA (RENA.PA) jumped 7.6% 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 (AXAF.PA) rose 6.1% 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 (LHAG.DE) gained 1.7% 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 (LVMH.PA) edged up 0.4% after fashion trade publication WWD reported that its $16.2 billion takeover of Tiffany & Co (TIF.N) is looking less certain.

Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur

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