European Shares Rise On China Reopening, Rate Hike Optimism

As China reopened its borders overnight and U.S. and European data calmed fears over aggressive tightening by central banks, European equities climbed on Monday, extending the year’s promising start into a second week.

As of 8:12 AM GMT, the pan-European STOXX 600 index had risen by 0.3%.

After a string of positive statistics, including robust manufacturing activity in the eurozone and a decline in regional inflation, the index posted its most significant weekly gain in nine months on Friday.

Concerns that the Federal Reserve and the European Central Bank will maintain their monetary solid policies were alleviated by this and data showing a tight U.S. labor market.

Technology companies with sensitivity to interest rate changes saw a 1.2% increase.

At 1000 GMT on December 1, investors will get a glimpse into the health of the Eurozone labor market by learning about the unemployment rate in November.

On Sunday, Beijing opened borders that had been effectively closed since the COVID-19 outbreak, and a flood of tourists poured into China via air, land, and sea.

The mining industry gained 1.7% as base metal prices rose on rising optimism that demand will revive from China, the world’s largest customer.

Devolver Digital and Frontier Developments, two video game businesses listed on the London Stock Exchange, saw their share prices fall after reporting poor financial results.