China's services gather speed, euro zone follows

Consumer demand is back in China.

Data out on Friday (July 3) showed the services sector expanded at its fastest pace in over a decade in June.

The Caixin/Markit services PMI rose to 58.4 well above the 50 mark that separates growth from contraction.

China continues to pull further away from the trough hit in February.

And its overall recovery is becoming more balanced as life slowly returns to normal.

The services sector accounts for about 60% of the Chinese economy and half of urban jobs.

The record numbers gave stocks an end-of-week boost too.

Asian shares rallied to a four-month high.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1%, reaching the highest level since late February.

And Japan's Nikkei rose 0.7%.

Mainland Chinese shares, among the best performers over the past month, extended gains.

Following Asia, European PMI numbers went down well too.

The plunge in euro zone business activity eased sharply last month as more businesses reopened and people ventured out.

IHS Markit's final Composite PMI, seen as a good gauge of economic health, bounced to 48.5 in June from May's 31.9.

One analyst told Reuters that the upturn signals a remarkably swift turnaround in the euro zone economy's plight.

Activity in the bloc's dominant service industry almost returned to growth last month.

Its PMI soared to 48.3 from 30.5, comfortably ahead of predictions.

But demand still fell despite vendors cutting prices, and firms reduced headcount for a fourth straight month.

And caution dominated markets in Europe.

Stocks paused after gains through the week as another record surge in U.S. virus cases dulled optimism

And some analysts say that despite the encouraging data, it will take months for activity to return to pre-crisis levels.