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May 17 Reuters European shares jumped 1.5 on Tuesday, on hopes that demand in China could be sustained as authorities looked to relax COVID19 restrictions that had started to squeeze the world39;s secondlargest economy.

Travel and commoditylinked stocks rose 2.2 and 2.3, respectively, while banks and industrial stocks were among sectors providing the biggest boost to the main index.

The panEuropean STOXX 600 index had ended flat on Monday after data showed growth slowing in China.

However, risk appetite got a boost on Tuesday after Shanghai achieved the longawaited milestone of three straight days with no new COVID19 cases outside quarantine zones, which could lead to the beginning of the lifting of restrictions. 

The markets have been obsessed with what39;s going on in China and essentially that is the singular major catalyst, said Keith Temperton, sales trader at Forte Securities, adding that supply chain challenges and developments around lockdowns in China had affected markets.

Worries about growth in China, a higher interest rate environment squeezing economic momentum, and the fallout from the RussiaUkraine war have dented markets this year, with the STOXX 600 hitting near oneyear lows in March.

Markets have also witnessed volatility. The regionwise benchmark hit twomonth lows…