European stocks rise on optimism about reopening in China

European stocks rose on Friday as bullish investors assessed the potential impact of the week-long Lunar New Year holiday after China lifted restrictions imposed to curb the spread of COVID-19, but fears of a global economic slowdown continued to dampen sentiment.

According to “Reuters”, the European Stoxx 600 index rose 0.2 percent by 0813 GMT, driven by the banking and industrial sectors.

Shares of luxury sectors with exposure to China, such as Louis Vuitton and Hermes International, increased by more than 1 percent each, amid optimism about reopening in China.

Energy sector stocks rose more than 1 percent, following the path of crude oil prices, hoping for a recovery in demand in the world’s second largest economy.

On Friday, China said the worst was over in its battle against COVID-19, before what was expected to be one of its busiest travel days in years, fueling fears of a further surge in infections.

Shares in the Swedish company Ericsson fell 8 percent, as the basic profits of the networking and communications company came in below expectations for the third quarter in a row.

Sandvik shares rose 3.4 percent after fourth-quarter earnings beat expectations.