Peter Nurse

Investing.com: European stock markets were higher on Monday due to improved German business sentiment despite concerns about rising inflation and increasing interest rates that have weighed heavily on the global economy outlook.

By 4:05 AM ET (0805 GMT), the in Germany traded 1% higher, the in France rose 0.4%, and the U.K.’s climbed 0.9%.

Following gains made by regional indexes last Friday and China’s relaxation of its key interest rate on Friday, this week began on a positive note. It suggests that Beijing is keen to support China’s second largest economy.

Monday’s mood was boosted by the publication of an improved than anticipated May index, which rose from 91.9 to 93.0 in April. As a result of rising input costs, the index was expected to drop.

A lot of uncertainty still exists due to inflationary pressures that have been exacerbated in part by the war in Ukraine, tightening central banks and Federal Reserve and slower economic growth.

Also of interest will be the World Economic Forum which kicks off in Davos this week after a two-year pandemic-enforced hiatus, with Russia’s invasion of Ukraine expected to feature heavily.

The corporate sector Kingfisher The stock of (LON) rose 3.1% following the company’s profit guidance. However, faster inflation might discourage British homeowners from renovating.

Moonpig stock rose 12% following the announcement by Smartbox Group that it would be buying Smartbox Group. This gift experiences platform will likely increase its margins.

Deutsche Euroshop’s stock rose more than 40% following a consortium offering 1.4 billion euros (or 1.49 billion dollars) for the acquisition of the German shopping centre investor.

Monday’s oil prices were slightly higher due to the anticipation of increased demand for the product as Shanghai opens its doors at the beginning Juni after a two-month shutdown and before the main U.S. driving year begins.

Lockdowns in China, and the commercial hub Shanghai, in particular, to combat a prolonged COVID outbreak have hammered industrial output and thus fuel demand from the world’s top crude importer.

U.S. fuel consumption should also rise, with peak American driving seasons traditionally starting on Memorial Day at the beginning of May and ending in September.

At 4:05 AM ET futures had traded at $111.38/barrel, 1% more than the contract, and rose 1.1%, to $111.23.

The price of gold rose 0.8% to $1855.92/oz while it traded 0.5% lower at 1.0614