European shares rise on upbeat China data; Renault jumps

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

The pan-European STOXX 600 <.stoxx> rose 0.8% by 0714 GMT, holding near a three-month high.

Sectors exposed to the health of China’s economy such as oil & gas <.sxep> and automakers <.sxap> rose more than 1% 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% 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 rose 5% 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.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)