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World shares rally to 4-week highs

Global stock markets rallied to four-week highs on Monday (July 6).

That as investors saw signs of an economic recovery in China.

The pan-European STOXX 600 rose just over 1.6% in early trade.

Stocks exposed to China like carmakers and luxury brands outperformed, while banks also rallied more than 4%.

MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since February.

Even Japan's Nikkei - which has lagged due to a soft domestic economy - rose 1.8%.

Shares went up for Japanese shippers and steelmakers, with both dependent on Chinese demand.

While Nissan gained 5% after the carmaker said sales in China grew last month.

Chinese shares saw their biggest one day jump in more than a year.

Shanghai's benchmark index rose over 5%.

Investors saw signs of recovery in China.

They were also optimistic after a state-run newspaper said the country needed a bull market to help fund its growing digital economy.

The positive sentiment followed Friday's (July 3) positive reports about China's services sector.

It grew at its fastest pace in more than a decade in June after lockdown measures were eased.