(Reuters) – European shares opened higher on Friday as news of China easing its stringent COVID rules boosted commodity-linked stocks as well as luxury goods retailers, which also got a lift from Richemont’s better-than-expected sales and margins.
The STOXX 600 index advanced 0.4% by 0812 GMT, with Swiss luxury group Richemont surging 10.9% to the top of the index.
China-exposed luxury giants LVMH, Kering, Pernod Ricard and Hermes International rose between 1.2% and 3.7% to boost the euro zone blue-chips index by 0.7%.
The European basic resources sector index jumped 2.5%, while energy stocks rose 0.4% as prices of base metals and oil shot up. [O/R] [MET/L]
China eased some of its COVID rules, including shortening quarantines by two days for close contacts of infected people and for inbound travellers and removing a penalty for airlines for bringing in too many cases.
Market sentiment was largely positive since the previous session when a smaller-than-expected rise in October U.S. inflation bolstered hopes of less aggressive interest rate hikes from the Federal Reserve going ahead.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Savio D’Souza)
