European stocks rise amid optimism about the prospects for the Chinese economy

European stocks rose on Tuesday, tracking a global rally in stocks after China eased COVID-19 restrictions, raising hopes for a recovery in the world’s second-largest economy.

The pan-European STOXX 600 index rose 0.6 percent after the long Christmas weekend. It had lost about 12 percent since the beginning of the year.

And affected fears of economic recession due to the tightening of monetary policy by central banks severely affected European stocks this year.

China said it would waive quarantine requirements for inbound visitors, further easing border controls for three years aimed at curbing COVID-19.

Mining stocks rose 1.2 percent and energy stocks rose 1.4 percent, as commodity prices jumped on hopes of a recovery in demand in China.

LVMH shares rose 1.9 percent and Kering 1.3 percent. Both companies are exposed to China.

The manufacturing and banking sectors increased for the second session in a row, lifting the broader European index.

Traders and analysts said that weak trading volumes during the holidays affected market movements.