European shares extend gains on stimulus boost

European shares rose for the fourth straight session on Thursday, as optimism over businesses returning to work and a massive stimulus plan for the European Union outweighed concerns over rising US-China tensions.

The pan-European STOXX 600 rose 0.6 per cent by 0718 GMT, with travel & leisure, telecoms and automakers leading the gains.

The benchmark index has climbed more than 30 per cent from March lows as investors pinned hopes on a gradual recovery with policymakers injecting trillions of dollars in the global economy and drugmakers racing to develop a coronavirus vaccine.

French aerospace companies Airbus and Safran rose 0.5 per cent and 2.2 per cent, respectively, after Boeing Co said it had resumed production of its 737 MAX passenger jet at its Washington plant.

Scandinavian airline SAS slumped 9.1 per cent after reporting a deep loss in the second quarter and said it was in intensive talks with shareholders to tap more funding to help it ride out a collapse in global air travel.