European shares rise on China reopening, rate hike optimism

European shares rose on Monday, extending the year’s upbeat start to a second week, as China reopened its borders overnight and U.S. and European data soothed nerves about aggressive tightening by central banks.

The pan-European STOXX 600 gained 0.3 % by 0812 GMT.

The index clocked its best weekly performance in nine months on Friday after a clutch of positive data” including strong eurozone factory activity and a drop in the region’s inflation” indicated a milder-than-expected recession and easing price pressures.

That, along with data showing a tight U.S. labour market, calmed fears that the U.S. Federal Reserve and the European Central Bank would continue with their aggressive monetary policy.

Rate-sensitive tech stocks rose 1.2 %. Investors await the euro zone’s unemployment data for November at 1000 GMT for further cues on the strength of the labour market.

Travellers streamed into China by air, land and sea on Sunday, as Beijing opened borders that have been all but shut since the start of the COVID-19 pandemic.

Miners added 1.7 % as base metal prices advanced on hopes of demand recovery from top consumer China.

London-listed video game companies Devolver Digital and Frontier Developments dropped 9.4 % and 40.6 %, respectively, after disappointing trading updates.

Video: European Central Bank hikes interest rates

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Source: SABC News (