Coronavirus: As Trump plans to re-open US economy, European shares rise

European shares jumped on Friday, clawing back weekly declines as financial markets globally drew comfort from U.S. President Donald Trump's plans for a gradual re-opening of the U.S. economy and reports of a potential drug to treat COVID-19.

The pan-European STOXX 600 index was up 2.5% at 0712 GMT, shrugging off data showing China suffered its worst economic contraction in almost three decades as the pandemic crushed business activity.

All the major European sub-sectors were trading higher, with mining stocks surging 4.1% on the back of higher commodity prices.

The benchmark STOXX 600 has now recovered about 24% since hitting an eight-year low in March, powered by a raft of global stimulus and tentative signs the pandemic was peaking in the worst hit parts of the continent.

Lifting the mood further on Friday, a report detailed encouraging partial data from trials of U.S. drugmaker Gilead Sciences Inc's experimental drug remdesivir in severe COVID-19 patients.

Nokia jumped 4% on a report that it was working with an investment bank to defend itself from a hostile takeover.