European Shares Rise on China Vaccination News

European stock markets traded higher on Tuesday, rebounding from losses in the previous session, following reports that China would step up elderly vaccination in a move that health experts consider as key to economic reopening.

Beijing faced growing pressure to relax its zero-Covid approach as protests in major cities erupted over the weekend, though analysts suggested that Xi Jinping’s government is unlikely to make drastic policy changes and admit policy mistakes.

Meanwhile, investors look ahead to Eurozone business survey and Germany's inflation data later today, as well as speeches by several European Central Bank officials for fresh clues on the region’s policy direction.

Earlier, Spain's CPI report showed headline inflation slowed more than expected in November, while the core rate is anticipated to have ticked up by 0.1pp to 6.3%, which might confirm the need for continued monetary tightening.