Investing.com - European stocks were higher on Friday, after the release of upbeat French consumer spending data and as Thursday's lower than expected U.S. spending data fuelled further expectations that the Federal Reserve could keep rates on hold for longer.
During European morning trade, the DJ Euro Stoxx 50 gained 0.43%, France’s CAC 40 rose 0.39%, while Germany’s DAX added 0.21%.
Official data showed that French consumer spending rose 1% in May, exceeding expectations for a 0.4% gain, after a 0.2% fall in April, whose figure was revised from a previously estimated 0.3% decline.
In the U.S., data on Thursday showed that personal spending rose 0.2% last month, below expectations for an increase of 0.4%. Personal spending for April was revised to a flat reading from a previously reported decline of 0.1%.
Meanwhile, Jean-Claude Juncker of Luxembourg was expected to be appointed as the European Commission President later in the day, despite the U.K. disapproval.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) gained 0.51% and 1.03%, while Germany's Commerzbank (XETRA:CBKG) jumped 1.12%.
According to the New York Times, BNP Paribas is set to plead guilty to criminal charges and pay an $8.9 billion fine to the U.S. government.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) advanced 0.73% and 1% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) rose 0.13% and 0.35%.
Elsewhere, Airbus (PARIS:AIR) rallied 1.46% amid reports it is nearing a decision to upgrade its A330 craft with engines from Rolls-Royce (LONDON:RR), whose shares climbed 1.15%.
In London, FTSE 100 rose 0.26%, supported by gains in the financial sector.
Shares in Lloyds Banking (LONDON:LLOY) gained 0.44% and HSBC Holdings (LONDON:HSBA) advanced 0.85%, while the Royal Bank of Scotland (LONDON:RBS) and Barclays (LONDON:BARC) surged 1.15% and 1.45% respectively.
Meanwhile, Reed Elsevier (LONDON:REL) was one of the worst performers on the index, down 1.33%, after the stock was downgraded by Barclays to an "equal weight" rating.
Mining stocks added to losses, as Glencore Xstrata (LONDON:GLEN) dipped 0.02% and Rio Tinto (LONDON:RIO) edged 0.10% lower, while rival Vedanta Resources (LONDON:VED) slipped 0.18%.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures pointed to a 0.03% dip, S&P 500 futures signaled a 0.06% loss, while the Nasdaq 100 futures indicated a 0.01% downtick.
Later in the day, Germany was to release preliminary data on consumer price inflation, while the U.S. was to produce revised data on consumer sentiment.