European shares rise as China COVID optimism lifts mood

Energy and healthcare stocks led European shares higher on Tuesday, following a strong handover from Asia where sentiment was boosted by speculation that China could ease COVID-19 curbs after recent protests.

The pan-European STOXX 600 index rose 0.3% by 0805 GMT. The index marked its worst session in almost two weeks on Monday on protests in China and worries about COVID curbs hitting economic growth in the world's second-largest economy.

Asian shares rallied strongly as they looked to a press briefing from China's health officials to ramp up bets that the recent public unrest might prompt an earlier loosening in COVID-19 restrictions.

China's National Health Commission issued a notice to increase COVID vaccinations for the elderly and shorten the time between vaccinations, while a health official said the unrest stemmed from overzealous implementation rather than the measures themselves.

Among economic cues, investors will be watching for German inflation data for November - expected to decline from the month before - later in the day, as well as final November consumer confidence data for the euro zone.