After China lifted some of its strict Covid restrictions, US index futures and European stocks rallied Friday.

The pan-European Stoxx 600 rose for a second day in a row, gaining 0.7%, which brought its weekly gains to 4.2%. Consumer, commodity, and technology stocks led the gains. Meanwhile US futures were up Friday, with the three major indices, the S&P 500, the Dow, and the Nasdaq all rising between 0.5% and 0.9%.

In China, some Covid restrictions were loosened as Beijing reduced the quarantine time for international travelers to two days from the previous five. The government also removed restrictions on international flights, as well as some other measures according to state media.

The prospects of a reopening China unencumbered by repeated lockdowns and strict Covid-controls caused oil to spike, as both major benchmarks, Brent and West Texas Intermediate, rose about 3%.

The markets also continued to be boosted by a drop in inflation in the US, from September’s 8.2% year over year, to October’s 7.7%. Some traders hope that will be seen as evidence of inflation being controlled, and that will prompt the Federal Reserve to ease its aggressive monetary policy moves of late.

However Bloomberg pointed out October’s 7% year over year rate of inflation is still well above the Federal Reserves 2% target rate, so there may be more tightening to come, before the Federal Reserve decides it has inflation under control.