European shares opened higher, supported by a jump in the retail sector

European stocks opened higher on Monday, supported by a jump in retail stocks after posting their worst weekly performance this year due to fears that interest rate hikes will continue for a longer period in the United States and the eurozone.

The pan-European Stoxx 600 index was up 0.8% by 0811 GMT, after falling 1.4% last week.

Higher-than-expected US inflation data boosted bets that the Federal Reserve will continue to raise interest rates. Recently, there have been signs of easing core inflation pressures in the eurozone, but concerns remain that high inflation may persist for longer than expected.

The European index of retail companies rose 1.5 percent, with shares of Heinz & Mauritz (H&M) rising 3.9 percent.

Shares in Associated British Foods, owner of Primark, jumped 2% after raising its financial forecasts for the entire 2022-2023 fiscal year, following a strong first-half performance by the clothing retailer.

All eyes are on the final estimate of consumer confidence in the eurozone for February, which will be released later on Monday.