LONDON, Jan 9 (Reuters) – European stock indexes rose in early trading on Monday and world stocks were at the highest in more than three weeks, boosted by investors scaling back expectations for U.S. Federal Reserve rate hikes and optimism about China’s borders reopening.
U.S. jobs data on Friday showed a jump in the workforce and easing wage growth. This, along with data pointing to a U.S. service sector contraction, was interpreted by investors as an indication that the Fed can be less hawkish. Global stocks rallied and the dollar dropped.
The upbeat market momentum continued on Monday, with Asian stocks up after China reopened its borders, bolstering the outlook for the global economy. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose to its highest in more than six months.
At 1219 GMT the MSCI World Equity index was up 0.6%, having hit its highest since Dec. 15…