European stocks rise, supported by Powell’s speech and hopes of easing restrictions in China

European stocks rose to their highest levels in three months on Thursday, supported by the Federal Reserve chairman’s indication that the pace of rate hikes will be lowered, as well as China’s softening of its rhetoric on strict anti-Covid-19 rules.

The Stoxx 600 was up 0.9% by 0810 GMT, after posting its best monthly performance in November since July and rising 6.8%.

Technology and industry stocks were among the biggest gainers in early trading.

However, energy stocks fell, which limited the index’s gains, after oil prices fell amid uncertainty ahead of the OPEC + group meeting scheduled for Sunday.

Investors appeared to focus on data showing that retail sales in Germany fell more than expected in October, as inflation deterred consumers from non-essential purchases at the start of the fourth quarter.

HSBC shares fell 1.9 percent after announcing on Wednesday a possible sale of its New Zealand business and plans to close 114 branches in Britain, the latest measures by the bank as it struggles to improve its revenues amid criticism from a major investor.