Peter Nurse 

Investing.com reports that European stock market traded higher on Monday thanks to gains in Asia. Major Chinese cities are beginning to relax mobility restrictions, even though Spanish inflation was rising. This increased pressure on Europe’s Central Bank.

By 4:10 AM ET (0810 GMT), the in Germany traded 0.8% higher, the in France rose 0.9%, while the U.K.’s climbed 0.5%.

Equity markets in Europe received a positive handover from Asia, with both the in Japan and Hong Kong’s up over 2%, boosted by the news that curbs on movement in key regions of China were loosened over the weekend.

Shanghai plans to end a COVID lockdown for two months starting June 1. Beijing also reopened parts of its public transport system on Sunday, as the infection stabilised.

Strict movement restrictions in key Chinese cities have severely hit the nation’s economy, the second largest in the world and a key export market for a number of European companies.

However, gains may be restricted Monday as the U.S. is on vacation and after the surprise rise to 8.7% from 8.3% in May of the previous year. 

Tuesday will see the flash estimate released. It is anticipated to reach another record of 7.7% for May (up from 7.4% in April), although Spanish data suggests further upside. If the flash estimate is significantly higher, it would essentially cement the expectation of ECB policy normalization starting this summer.

S4 Capital (LON. ) stock rose 2.3% following the announcement by the media group that its first-quarter gross profits had increased significantly. The company also reiterated their full-year outlook saying they expect strong demand in spite of slower global economic growth. 

Ted Baker LON stock rose 2.5% in response to a report from Authentic Brands that Juicy Couture is closing in on a $300 million pound deal ($379.35million) for its U.K. fashion store.

Oil prices rose on Monday and traded at two new monthly highs despite plans by the European Union to impose sanctions against Russia. This was despite the summit meeting of leaders from member states that took place later in the day.

A deal can only be made if all members agree to it. Hungary continues to oppose any agreement and to some extent Czechia as well as Slovakia. 

A further Russian oil ban would tighten the supply in a market that is already stretched due to rising demand. This comes as peak season for the United States of Europe nears.

At 4:10 AM ET futures had traded 0.9% higher to $116.10/barrel, and the contract rose by 1% at $116.64.

The price of gold rose 0.3% to $1856.65/oz while it traded 0.2% lower at 1.0751