European stocks jump on China stimulus; luxury stocks shine By Reuters

(Reuters) – European shares opened higher on Tuesday as sweeping Chinese stimulus measures boosted stocks of luxury companies and miners.

The pan-European index gained 0.8 percent to 520.40 points by 0711 GMT, and the 40 rose 1.4 percent, beating a like-for-like performance.

China’s top financial regulators have unveiled their biggest stimulus since the pandemic, saying they will cut bank reserves by 50 basis points while cutting mortgage rates.

Luxury companies, which rely heavily on consumer spending in China, were the index’s biggest boost.

LVMH, Hermes, Kering (EPA: ), and Dior gained between 3.8% and 4%.

Basic resources led sector gains, rising 4.4 percent as prices hit a two-month high supported by China’s measures and rising demand in the region. (MET/L)

rose 0.4% as metal miners’ stocks rose on China’s stimulus plans.

Markets will also be watching for comments from European Central Bank board member Elizabeth McCaul, who is due to speak later in the day.

Data on German business sentiment is due at 0800 GMT.

Among individual stock moves, British engineering firm Smiths Group ( OTC: ) lost 6.7 percent after annual profit missed estimates.