BRUSSELS, Nov 7 — European shares rose today, reversing declines from the opening bell, as a jump in travel stocks helped outweigh a drag from China-exposed luxury giants.

The benchmark STOXX 600 index added 0.6 per cent by 0929 GMT, extending gains after its fourth straight weekly rise.

Flutter Entertainment Plc rose 4.5 per cent, boosting European travel & leisure stocks by 2.3 per cent and helping it touch a near three-month high.

An arbitrator on Friday reaffirmed Fox Corp has 10 years to exercise its option to acquire an almost one-fifth stake in Flutter-owned betting app FanDuel.

Irish stocks jumped 2.0 per cent, lifted by Ryanair’s 3.3 per cent jump after it posted its largest ever first-half after-tax profit and said it expected to return to pre-Covid-19 annual profit level this year.

European luxury stocks, including LVMH, Pernod Ricard and Hermes International, dipped between 0.1 per cent and 0.4 per cent.

Health officials in China reiterated their commitment to strict Covid-19 curbs over the weekend, disappointing investors hopeful for a relief. Separately, data showed Chinese exports and imports both contracted in October and missed forecasts.

“I think market participants are trying to find an excuse to buy stocks,” said Stephane Ekolo, strategist at Tradition in London.

“In spite of China sticking to its zero-Covid pledge, there are some in the market that still believe that China might somewhat ease its Covid-19 policy.”

The STOXX 600 index has started November on steady footing, aided by a better-than-expected reporting season and hopes that the US Federal Reserve will deliver rate hikes in smaller increments, despite euro zone data pointing to an imminent recession.

The focus for the week will be tomorrow’s US midterm elections, which will determine control of Congress. Republicans have picked up momentum in polls and betting markets and analysts see a split government — with the GOP winning the House of Representatives and possibly the Senate.

“A split government is generally good for equity markets because that puts a bit of a gridlock on certain policy changes,” said Daniela Hathorn, a market analyst at Capital.com.

Among other stocks, Telecom Italia jumped 7.5 per cent as top investor Vivendi would start talks with Italy’s new right-wing government on a new plan to create a national broadband company.

Dutch fertiliser maker OCI fell 3.7 per cent to the bottom of the STOXX 600 after JP Morgan cut its rating on the stock on softer quarterly outlook. — Reuters