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STOXX 600 up 0.8

Jan 2 Reuters European shares rose in the first trading session of 2023 on Monday as euro zone manufacturing data suggested the worst had passed after a year marred by fears of a recession as central banks hiked rates globally.

The panregional STOXX 600 rose 0.8, supported by consumer discretionary stocks. The automobiles and parts sector gained 2.5 and luxury names like LVMH and Kering added about 1.5 each.

With 10year bund yields above 2.50, relaxed yearend trading and the probable drop in HICP inflation are raising hopes for an upbeat start into the year, Commerzbank Research analysts said in a note, referring to the euro zone consumer prices inflation data due later this week.

An early indicator was data showing the downturn in euro zone manufacturing activity has likely passed its trough as supply chains begin to recover and inflationary pressures ease, leading to a rebound in optimism among factory managers.

The STOXX 600 ended 2022 with sharp losses, driven by central banks39; aggressive policy tightening to rein in soaring prices, an economic slowdown, the RussiaUkraine conflict that fanned inflationary pressures and growing concerns over COVID cases in China.

Ratesensitive technology stocks, among the worstperforming shares last…