By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets showed
broad-based gains on Friday and were on track for solid weekly
advances after U.K. retail sales jumped more than expected, and
investors waited for U.S. housing and industrial-production
data.
The Stoxx Europe 600 index added 0.4% to 335.32, eyeing a 1.6%
weekly advance.
Adding pressure on the benchmark, however, shares of Royal Dutch
Shell PLC (RDSB) lost 2.3% after the energy giant warned profit in
the fourth quarter is expected to be "significantly lower than
recent levels", partly due to current oil and gas prices.
Another oil major, Total SA (TOT), added 0.9% after Citigroup
lifted the French firm to buy from neutral.
Pandora AS climbed 3% after the Danish jewelry firm said sales
in 2013 rose more than anticipated after a better-than-expected
holiday period and a string of store openings.
More broadly, the major indexes took a firm leg up in midmorning
trade after the U.K. Office for National Statistics said retail
sales jumped 2.6% in December over November, beating analysts'
forecast of a 0.2% rise. That was the biggest month-on-month rise
since February 2010.
"Despite all the noises about a questionable Christmas, U.K.
consumers seem to have their mojo back," said Rob Wood, chief U.K.
economist at Berenberg, in a note.
He cautioned, however, that the December surge follows two weak
months and that Christmas sales tend to be volatile from year to
year.
"So it would be worth waiting for the January figures before
concluding consumer sentiment is quite as strong as these growth
rates signal," Wood said.
Investors also waited for the latest economic data from the U.S.
to gauge the strength of the world's largest economy. Data out in
the afternoon are likely to show a cooling in housing starts and
industrial production. U.S. stocks rallied earlier in the week on
the back of stronger-than-expected retail sales and upbeat
manufacturing data.
Stock futures pointed to a higher open on Wall Street on
Friday.
Back in Europe, most major country-specific indexes were also on
the rise and pointing to solid weekly gains. Germany's DAX 30 index
rose 0.3% to 9,748.17, on track for a 2.9% advance on the week,
which would mark the best week since December.
France's CAC 40 index put on 0.2% to 4,328.83 and the U.K.'s
FTSE 100 index inched 0.1% higher to 6,823.46.
Mining firms rose in London, adding to gains seen on Thursday
when Citigroup went bullish on the sector for the first time in
three years. Shares of Glencore Xstrata PLC (GLCNF) added 3.4%, Rio
Tinto PLC (RIO) put on 2% and BHP Billiton PLC (BHP) gained
1.4%.
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