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China data drives early gains in European stocks

Published 08/10/2020, 03:20 PM
Updated 08/10/2020, 03:30 PM
©  Reuters
BP
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SHEL
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TTEF
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STOXX
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SPIE
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SX8P
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SXEP
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SX7P
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SXAP
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SXDP
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PRX
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2222
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
Aug 10 (Reuters) - European shares inched higher on Monday
as a decline in China's producer prices slowed and oil prices
rose, while investors looked to Washington for signs of more
U.S. stimulus.
The pan-European STOXX 600 index .STOXX rose 0.3% by 0712
GMT, kicking off a week that could see subdued trading activity
as traders head out for summer holidays.
Sectors considered more sensitive to economic health such as
banks .SX7P , oil and gas .SXEP and automakers .SXAP rose
as data showed China's factory deflation eased in July, driven
by a rise in global oil prices and as industrial activity
climbed back towards pre-coronavirus levels. Shares in energy majors BP BP.L , Royal Dutch Shell
RDSa.L and Total TOTF.PA rose nearly 2% as crude prices
gained after Saudi Aramco 2222.SE raised optimism about Asian
demand and Iraq pledged to deepen supply cuts. O/R
French engineering company Spie SPIE.PA jumped 5.7% after
a double upgrade to "buy" from Jefferies, while Dutch tech
investor Prosus PRX.AS slid for a third day running as U.S.
prepares ban on two popular Chinese apps, WeChat and TikTok.
Heavyweight sectors like technology .SX8P and healthcare
.SXDP fell 1% and 0.4%, respectively, limiting gains in the
broader market.

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