European shares rise on China reopening, rate hike optimism
The pan-European STOXX 600 gained 0.3% by 0812 GMT.
The index posted its best weekly performance in nine months on Friday after a flurry of positive data – including strong factory activity in the euro zone and a slowdown in the region’s inflation – indicated a milder than expected recession and a reduction in price pressures.
This, together with data showing a tight US labor market, calmed fears that the US Federal Reserve and the European Central Bank will continue with their aggressive monetary policy.
Rate-sensitive technology stocks rose 1.2%.
Investors await eurozone unemployment data for November at 1000 GMT for further indications of the health of the labor market.
Travelers poured into China by air, land and sea on Sunday, as Beijing opened borders that have been closed since the start of the COVID-19 pandemic.
Miners added 1.7% as prices of the base metal advanced on hopes of a recovery in demand from top consumer China.
London-listed video games companies Devolver Digital and Frontier Developments fell 9.4% and 40.6%, respectively, after disappointing trading updates.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Savio D’Souza)