European shares rise on optimism from China’s stimulus measures

European shares rose to surpass three-week highs on Monday as fresh stimulus measures in China boosted optimism that began last week, while investors looked forward to more economic data this week, including inflation in Germany.

And the authorities in Shanghai, the Chinese commercial center, will cancel many conditions imposed on companies to resume their work from Wednesday, thus easing the closure measures due to the spread of Covid-19.

European stocks achieved their best weekly performance since mid-March last week, as markets were calmed by strong US consumer sentiment data and signs that inflation is peaking, as well as clarity of vision on the policies of the Federal Reserve.

Inflation data in Germany, due at 1200 GMT, is expected to show inflation rising by 8 percent, according to Refinitiv data, after rising to 7.4 percent in April, adding to pressure on the European Central Bank.

Sanofi fell 2 percent, while Telecom Italia jumped 3.7 percent.