European shares open lower as mining and luxury goods stocks fall

European shares opened lower on Monday, with mining and luxury stocks tumbling after hopes that China would ease its strict COVID-19 restrictions earlier this week faded.

The pan-European STOXX 600 index fell 0.5% by 0805 GMT, after a string of gains that extended for four consecutive weeks.

Shares of European mining companies exposed to China fell 0.6 percent, and shares of luxury goods companies, including LVMH, Kring, Pernod Ricard and Hermes International, fell between 0.7 percent and 1.6 percent.

Health officials in China reiterated their commitment to the stricter restrictions associated with COVID-19 earlier this week, disappointing investors who had hoped to ease them. Separately, data showed that Chinese exports and imports contracted in October and missed expectations.

On the bright side, Swedish Match rose 0.7 percent after cigarette maker Philip Morris International announced that it would go ahead with a $16 billion deal to buy its Swedish counterpart.