European shares open higher, supported by commodity and ‎luxury companies

European shares started trading higher on Friday, as news of China easing strict Covid rules boosted shares related to primary and luxury goods, which were also supported by better-than-expected sales data and margins from Richemont.

According to “Reuters”, the Stoxx 600 index increased by 0.4 percent by 0812 GMT, and the Swiss Richemont share of luxury goods rose 10.9 percent to the top of the index.

The shares of major luxury goods companies exposed to China, including LVMH, Kring and Pernod Ricard, rose by between 1.2 and 3.7 percent, which increased the index of leading shares in the euro area by 0.7 percent.

The European index of the basic resources sector jumped 2.5 percent, while energy shares jumped 0.4 percent, amid an increase in the prices of base metals and oil.

China eased some Covid restrictions, including reducing the quarantine period for contacts and incoming travelers by two days, and eliminating punishment for airlines that transport a large number of cases.

Positive sentiment has prevailed in the markets to a large extent since the previous session, after a less-than-expected rise in US inflation in October boosted hopes that the Federal Reserve (the US central bank) will raise interest rates less in the future.