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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