European shares gain as Trump plans to reopen U.S. economy

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.