Europe markets open to close

LONDON — European markets were higher in morning trade as investors assessed China’s reopening and awaited key European inflation numbers.

Britain’s FTSE 100 rose 2.1%, while Germany’s DAX index rose 1.4% and France’s CAC 40 rose 1.2%.

Overall, the pan-European Stoxx 600 gained 1.6%, driven by travel stocks, up 2.7%.

Preliminary German inflation figures for December are due Tuesday afternoon and are expected to show a decline from the previous month.

They will be followed by inflation figures from France on Wednesday, Italy on Thursday and a flash estimate for the whole of the euro zone on Friday.

UK markets were closed on Monday, but shares in the rest of the continent increased as eurozone manufacturing data indicated the worst may be over for the 20-member currency bloc.

The figures offered hope for a light at the end of the tunnel, after a year beset by fears of recession as central banks around the world aggressively raised interest rates to curb soaring inflation.

Meanwhile, Asia-Pacific markets were mixed overnight as investors weighed the short-term implications of rising coronavirus infections in China against the potential longer-term boost from the full reopening of the world’s second-largest economy.

The Caixin Purchasing Managers’ Index showed further declines in factory activity due to the surge in Covid infections, but the survey also placed business confidence around the 12-month production outlook at its highest level since February 2022.

Global investors will also be watching the minutes of the Fed’s December policy meeting, which are due out on Wednesday.

The central bank raised rates by 50 basis points in December after four straight increases of 75 basis points, and markets will be keen to assess the likely path of monetary policy in 2023.

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