European stocks with high short interest and exposure to China rose sharply on Thursday as traders sought to reduce risk before trading resumed in Asian markets. The Chinese market is currently closed for the Spring Festival holiday. As European stocks experienced a broad short covering, The Swatch Group AG closed up 2.2%, reversing a decline of as much as 7.5% earlier, after the watchmaker's earnings fell short of expectations; S&P Global data shows that short positions in The Swatch Group AG account for about 18% of its outstanding shares. Among other luxury brands, Salvatore Ferragamo rose 3.1%, Kering rose 3.9%, and Burberry rose 5.9%. Salvatore Ferragamo's short positions account for about 9% of its outstanding shares