European shares open higher, retailers jump

Retailers pulled European shares higher on Monday, after their worst weekly performance this year on worries of higher interest rates for longer in the United States and the eurozone.

The pan-European STOXX 600 index added 0.8% by 0811 GMT, after falling 1.4% last week.

U.S. inflation data came in hotter than expected fuelling bets that the Federal Reserve will continue to raise rates. Headline price pressures in the eurozone have shown signs of easing recently, but worries lingered that inflation could be stickier than previously anticipated.

The European retail sector index rose 1.5%, with Hennes & Mauritz shares gaining 3.9%.

Primark owner Associated British Foods climbed 2.0% as it raised its financial outlook for the full year 2022-23 after a strong firs-half performance from the clothing retailer.

Also on the radar is the final estimate of the euro area consumer confidence for February which will be released later in the day.