Europe open: Shares up as China, German data boost sentiment

European shares started June on a positive note on Thursday as better than expected data out of China and Germany and an initial vote in favour of the US debt ceiling deal boosted sentiment.

The pan-European Stoxx 600 index was up 0.64% in early deals, with all major bourses higher.

The bill to raise the US debt limit and cap government spending passed by 314-117 in the House of Representatives late on Wednesday. Lawmakers hope it will now clear the Democratic-controlled Senate within 48 hours, ahead of the June 5 deadline for avoiding a potential default.

Factory activity in China showed an unexpected jump to growth in May from decline, according to a private sector survey published on Thursday, as demand and production improved.

The Caixin/S&P Global manufacturing purchasing managers’ index (PMI), rose to 50.9 in May from 49.5 in April and above forecasts of 49.5.

In Germany, retail sales climbed by 0.8% month-to-month in April, partially reversing a 2.4% decline in March, and slightly below consensus for a 1% increase, the Federal Statistics Office said on Thursday.

Eyes will now turn to eurozone inflation data later in the morning.

Corporate news was starting to thin out but shares in UK bootmaker Dr Martens still hit the headlines, slumping 12% as the company posted a slump in annual earnings an warned of lower margins.

Reporting by Frank Prenesti for Sharecast.com