European shares rise on optimism about easing China’s Covid lockdown

European shares rose on Tuesday and were set to extend their gains for the third consecutive session, supported by hopes of continued demand from China as authorities look to ease COVID-19 restrictions.

The Stoxx 600 index rose 0.7 percent by 0710 GMT, with gains for all major sub-sectors, led by travel and commodity-related stocks.

The main index closed flat on Monday as data showing slowing growth in China weighed on risk appetite.

But sentiment received a boost on Tuesday after Shanghai achieved the long-awaited achievement of three consecutive days of no new COVID-19 cases detected, which could lead to the start of lifting restrictions.

Among individual stocks, French energy group Engie jumped 6.2 percent after it posted an increase in first-quarter profit and raised its forecast for 2022. The company also said it was in talks with Russia’s Gazprom about changing the price payment system for Russian gas supplies.

Daimler Truck Holdings Inc rose 4.8 percent as it raised its forecast for 2022 revenue.

Vodafone’s shares fell 3 percent after earnings growth forecasts for the current year fell short of market expectations.