© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 10, 2022. REUTERS/Staff
(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 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 (EPA:), Pernod Ricard (EPA:) and Hermes International (OTC:) 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.
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