Europe open: Shares up on Asia rumour China plans to lift Covid curbs

European shares opened higher on Friday, taking their cue from Asia where markets were higher on hopes China will relax its tough Covid curbs and despite a fall in German factory orders.

The pan-European Stoxx 600 index was up 0.67% in early deals with all regional markets higher. After the 75 basis-point rise in US interest rates this week, traders will be eyeing US jobs data later in the day.

Hong Kong’s Hang Seng index surged more than 5% on social media speculation that some of China’s strict Covid rules that have sharply weighed on its economy could be set to ease in the coming months, although the mood was tempered when Chinese officials said they were unaware of any such move.

In economic news, German factory orders fell a lot more than expected in September, according to official figures, adding to concerns it is entering a recession

Factory orders declined by 4% on the previous month following a 2% drop in August, missing expectations for a 0.5% fall. On the year, orders were down 10.8% in September following a 3.8% decline the month before and versus expectations for an 8.8% fall.

In equity news, shares in Societe Generale, France’s third-biggest listed bank, rose as it posted a higher than expected net income in the third quarter as market volatility boosted trading revenues.

Reporting by Frank Prenesti for Sharecast.com