European Shares Seen Up As US Rate Hike Worries Ease, China Reopens Borders

(RTTNews) - European stocks are likely to open higher on Monday as concerns eased about aggressive tightening by the Federal Reserve.

Asian markets advanced as China braced for a "new phase" in its battle against COVID-19 after opening its borders on Saturday for the first time in three years.

Investors shrugged off increased geopolitical tensions after China conducted military drills along Taiwan's border.

Gold prices rose as the dollar traded weak and headed back to the December lows. Oil prices rose over 1 percent on hopes of demand recovery in the world's second-largest economy.

In economic releases, industrial production data from Germany, unemployment figures from the euro area and Eurozone Sentix investor confidence survey results are due later in the day.

Economists expect German industrial output to grow marginally by 0.1 percent in November from October, when output was down 0.1 percent.

The euro zone jobless rate is seen unchanged at 6.5 percent for November while the region's Sentix investor sentiment index is forecast to rise to -18.0 in January from -21.0 in December.

U.S. stocks posted strong gains on Friday as data showing a contraction in U.S. services industry activity for the first time in more than 2-1/2 years and signs of cooling wage growth raised hopes for a change to aggressive Fed policy.

The Dow jumped 2.1 percent, the S&P 500 surged 2.3 percent and the tech-heavy Nasdaq Composite climbed 2.6 percent.

European stocks also advanced on Friday after separate reports showed a drop in Eurozone consumer price inflation and an improvement in eurozone economic confidence.

The pan European STOXX 600 gained 1.2 percent. The German DAX rallied 1.2 percent, France's CAC 40 added 1.5 percent and the U.K.'s FTSE 100 rose 0.9 percent.