European stock indexes rose in early trading on Monday, boosted by investors scaling back their expectations for U.S. Federal Reserve rate hikes and optimism about China’s borders reopening.
A soft landing is the ideal Federal Reserve policy goal after raising interest rates, a situation in which inflation slows but there are not enough job losses to trigger a recession. The U.S. dollar index was down around 0.1%, still near its lowest in seven months after it dropped 1.2% on Friday.China’s offshore yuan neared its highest in five months versus the U.S. dollar at 6.7885, while the Australian dollar - often seen as a proxy for risk appetite - was up 0.8% on the day at $0.6928, having touched its highest since late August earlier in the session.
Oil prices climbed by more than 2%, as China’s reopening overshadowed concerns about a global recession.