Home News European shares end higher on China recovery optimism
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

European shares end higher on China recovery optimism

by uma

By Bansari Mayur Kamdar and Shreyashi Sanyal

(Reuters) -European shares closed a touch higher on Tuesday as China relaxing its COVID-19 curbs more raised hopes of a recovery in the world’s second-largest economy.

The pan-European STOXX 600 index gained 0.1%, kicking off a holiday-shortened week in the black.

China on Monday said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID. [MKTS/GLOB]

While London and Dublin markets remained closed for the Christmas holiday, most European bourses advanced.

Chinese reopening and the in-line U.S. inflation data on Friday could provide a “minor boost to equity markets,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

China-exposed luxury firms LVMH, Kering and Richemont rose between 1.7% and 2.4%.

The STOXX 600 Personal & Household index gained 0.9%, according to Refinitiv data based on Thursday’s closing price.

Energy stocks added 0.4%, as oil prices jumped on hopes of demand recovery in top consumer China. [MET/L] [O/R]

But OCBC strategist Christopher Wong said “fast reopening can be double-edged sword. There is no let-up in the pace of relaxing COVID restrictions in China despite the surge in cases.”

Traders and analysts said thin trading volumes also influenced market moves.

German companies expect only a mild recession next year despite headwinds from the energy crisis, raw material shortages and a tepid global economy, a Reuters survey showed.

Shares in Germany, Europe’s largest economy, gained 0.4%.

The European STOXX 600 index has lost more than 12% so far this year, and is headed for its worst annual performance since 2018, on fears of economic recession due to aggressive monetary policy tightening by central banks globally.

Among individual movers, Leonteq fell 5.4% after the Swiss fintech firm said it was lowering its profit expectations for 2022 due to reduced client demand in the second half of the year.

(Reporting by Bansari Mayur Kamdar and Shreyashi Sanyal in BengaluruEditing by Vinay Dwivedi, Eileen Soreng and David Evans)

 

You may also like