European shares open higher as luxury, mining stocks jump on China reopening hopes

European shares opened higher on Friday, with luxury stocks and miners leading the advance on hopes that China will soon ease its strict COVID-19 curbs. The STOXX 600 rose 0.7% by 0813 GMT, with miners jumping 3.2%, ahead of data which will likely show the smallest U.S. job additions in nearly two years in October and a small increase in the unemployment rate. Recent unsubstantiated social media posts stating China may relax its COVID rules in March has lifted investor optimism.

European shares opened higher on Friday, with luxury stocks and miners leading the advance on hopes that China will soon ease its strict COVID-19 curbs.

The STOXX 600 rose 0.7% by 0813 GMT, with miners jumping 3.2%, ahead of data which will likely show the smallest U.S. job additions in nearly two years in October and a small increase in the unemployment rate. Luxury giants, including LVMH, Kering, Pernod Ricard and Hermes International, climbed between 0.9% and 2.5%. A report said Kering was in advanced discussions to buy fashion brand Tom Ford.

Both the sectors have major exposure to China, the world's second-largest economy. Recent unsubstantiated social media posts stating China may relax its COVID rules in March has lifted investor optimism.