* Euro STOXX 600 gains 0.4%
* Oil and gas sector up 1% on rising crude prices
* Chinese data stokes bode well for global recovery -
analysts
* Gains checked by U.S.-China tensions, wait for U.S.
stimulus
* Tech sector falls 0.1% on tensions
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Tom Wilson
LONDON, Aug 10 (Reuters) - Share markets rose on Monday as
stronger industrial activity in China offered signs it was
recovering from the coronavirus pandemic that outweighed jitters
over U.S.-Sino trade tensions.
The Euro STOXX 600 rose 0.4% and London's FTSE
0.5%. European oil and gas shares were up 1.1%
as rising oil prices added reasons for riskier bets.
Shares in BP and Royal Dutch Shell rose 2.6%
and 1.5% respectively after Saudi Aramco raised
optimism about a growth in Asian demand and Iraq pledged to
further cut supply.
Deflation at China's factories eased in July, data showed,
driven by a rise in global energy prices and as industrial
activity climbed back towards pre-coronavirus levels.
Industrial output in China is returning to levels seen
before the pandemic paralysed huge swathes of the economy,
driven by pent-up demand, government stimulus and surprisingly
resilient exports.
That bodes well for the global recovery from the coronavirus
pandemic, market players said.
"China is so much in advance in this process of lockdowns
and exiting lockdown, that any good signs for the Chinese
economy is essential (for the world economy)," said Florian
Ielpo, head of macroeconomic research at Unigestion.
The MSCI world equity index, which tracks
shares in 49 countries, was flat. Wall Street futures gauges
pointed to slim gains.
But advances were checked by tension between the United
States and China ahead of scheduled trade talks at the weekend
to review the agreement signed in January.
Underscoring concerns, European tech shares lost
0.8% on the tensions, the only sector to fall in early trade.
U.S. President Donald Trump signed executive orders banning
Chinese social media platforms WeChat - owned by Chinese tech
giant Tencent - and TikTok starting next month, and
imposed sanctions on 11 Hong Kong and Chinese officials.
U.S. regulators also recommended that overseas companies
listed on American exchanges be subject to U.S. public audit
reviews from 2022.
The U.S.-China tensions has stoked fears about an adverse
impact on trade talks. Any friction here could complicate the
global recovery from the coronavirus pandemic, investors said.
Earlier, Asian shares outside Japan seesawed
in holiday-thinned trade, staying below a six-and-a-half-month
peak touched last week. They were last flat.
WAITING FOR WASHINGTON
Causing further uncertainty for investors are talks in
Washington over a U.S. fiscal stimulus package. House Speaker
Nancy Pelosi and Treasury Secretary Steven Mnuchin on Sunday
said they were open to resuming aid talks.
Trump has sought to take matters into his own hands, signing
executive orders and memorandums aimed at unemployment benefits,
evictions, student loans and payroll taxes.
With investors worried that the U.S. recovery may lag behind
those in other major economies, the dollar's two-year supremacy
has slipped.
Against a basket of currencies, the dollar gained 0.3% to
93.620 and still just above a two-year trough.
"The fresh stimulus provided by President Trump through
executive orders is better than none at all and provides a stop-
gap solution," wrote analysts at MUFG in London.
For Reuters Live Markets blog on European and UK stock
markets, please click on:
(Reporting by Tom Wilson, editing by Larry King)
BP (BP.)
