European stocks edged higher on Friday as bullish investors weighed in on the potential impact of the week-long Lunar New Year holiday after China lifted restrictions imposed to curb the spread of COVID-19, but fears of a global economic downturn continued to dampen sentiment.
The pan-European Stoxx 600 rose 0.2% by 08:13 GMT on the back of banking and manufacturing.
Shares in China-related luxury sectors such as Louis Vuitton and Hermes International rose more than 1% each amid optimism about China reopening.
Energy stocks rose more than 1 percent on the back of crude oil on hopes of a recovery in demand in the world’s second-largest economy.
China said on Friday that the worst of its battle with COVID-19 is over, ahead of what is expected to be one of the busiest days of travel in recent years, heightening fears of a further spike in infections.
Shares of Swedish company Ericsson fell 8% as core earnings of the networking and communications company fell short for the third straight quarter.
Sandvik shares rose 3.4 percent after better-than-expected fourth-quarter earnings.
