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* BP, Shell jump as oil prices rise
* Easing China factory deflation supports markets
* Tech stocks decline amid U.S.-China tensions
(Updates to market close)
By Sruthi Shankar
Aug 10 (Reuters) - European shares closed slightly higher on
Monday as growth-sensitive cyclical stocks got a boost from
improving economic data out of China, but renewed U.S.-China
tensions hit technology shares.
With trading volumes dwindling as traders leave for summer
holidays, the broader European STOXX 600 index held to
tight ranges, ending the session 0.3% higher. The benchmark saw
trading volume down to nearly 75% of its 30-day moving average.
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, lifting hopes of an
economic rebound in the world's second-largest economy.
Energy majors BP, Royal Dutch Shell and
Total rose between 1.3% and 3% as crude oil prices
rose.
Banking sector stocks rose 2.0%, leading sectoral
gains, while the travel & leisure index, which has dealt
a heavy blow in the wake of the health crisis, rose 0.9%.
Carnival Plc jumped 9.3% as it planned to resume
AIDA Cruises sailing operations from German ports at the start
of September.
However, equity analysts at JPMorgan Cazenove argued they do
not a see a case for a sustained rally in the cyclical stocks.
"For Cyclicals and Value to work from here, one needs to see
a continued acceleration in the PMIs. We think this is
unlikely," JPMorgan's Mislav Matejka wrote to clients.
Technology stocks, which have outperformed this year
in Europe, slid 1.5% on worries over the heightening U.S-China
rift ahead of scheduled talks on Aug. 15 to review the trade
agreement signed in January.
Dutch tech investor Prosus slid for a third day
running as the United States prepares ban on two popular Chinese
apps, WeChat and TikTok.
Investors were also monitoring the negotiations between
White House officials and Democrats over a fifth bill to address
the economic impact of the coronavirus pandemic.
U.S. President Donald Trump on Saturday signed executive
orders and memorandums aimed at unemployment benefits,
evictions, student loans and payroll taxes until the more
concrete stimulus bill could be passed.
Among other individual movers, Norwegian energy firm Equinor
rose 1.4% after it appointed a company executive
Anders Opedal as chief executive officer.
In Britain, fashion retailer Superdry jumped 18.7%
after agreeing a new 70 million pounds ($91.5 million) lending
facility, while AA also surged after Sky News reported
that Apollo Global Management was weighing a 3 billion
pound takeover bid for the roadside recovery group.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun
Koyyur and Hugh Lawson)
Carnival (CCL)
BP (BP.)
