London — European stocks rose in early trading on Friday, as investor risk appetite was boosted by signs of an economic recovery in China, even after expectations for European Central Bank rate hikes kept government bond yields at their highest in years.
Gains continued during Asian trading, with investors optimistic about signs that the world’s second-biggest economy is making a steady rebound after the Chinese government ditched stringent Covid controls in December. Gkionakis said that though risk assets faced headwinds from tighter monetary policy, global demand is picking up.Eurozone government bond yields were still near their highest in years after eurozone inflation data on Thursday drove market expectations for the ECB's terminal rate to around 4%.