China data drives early gains in European stocks

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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 (L:BP), Royal Dutch Shell (L:RDSa) and Total (PA:TOTF) rose nearly 2% as crude prices gained after Saudi Aramco (SE:2222) raised optimism about Asian demand and Iraq pledged to deepen supply cuts. [O/R]

French engineering company Spie (PA:SPIE) jumped 5.7% after a double upgrade to “buy” from Jefferies (NYSE:JEF), while Dutch tech investor Prosus (AS:PRX) 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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