Investing.com - European stocks were sharply higher on Thursday, as investors digested a recent string of downbeat economic reports from the U.S. and the euro zone and as markets awaited the release of euro zone inflation data later in the day.
During European morning trade, the DJ Euro Stoxx 50 climbed 0.66%, France’s CAC 40 gained 0.68%, while Germany’s DAX advanced 0.61%.
Equitiy markets were hit on Thursday after official data showed that U.S. retail sales fell 0.3% last month, more than the expected 0.1% slip, while core retail sales, which exclude automobiles, dropped 0.2% in September, confounding expectations for a 0.3% gain.
A separate report showed that U.S. producer price inflation slipped 0.1% last month, disappointing expectations for a 0.1% rise, while the Federal Reserve of New York reported that its manufacturing index tumbled to a six-month low of 6.2 in October from a reading of 27.5 the previous month.
Markets were also jittery after data on Tuesday showed that the euro zone's industrial production declined more than expected in August, while a separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) advanced 0.96% and 0.90%, while Germany's Deutsche Bank (XETRA:DBKGn) rallied 1.88%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) surged 1.84% and 1.94% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) jumped 1.05% and 1.43%.
Elsewhere, Carrefour (PARIS:CARR) saw shares climb 2.03% after the retailer said sales growth slowed in the third quarter, weighed by Spain and Italy, although sales in its core French market declines less than expected.
Also in earnings news, Swiss food giant Nestle (SIX:NESN) said sales dropped 3.1% in the first nine months of 2014 but maintained its full-year outlook.
In London, FTSE 100 advanced 0.81%, as U.K. lenders tracked their European counterparts higher.
Shares in Lloyds Banking (LONDON:LLOY) and the Royal Bank of Scotland (LONDON:RBS) advanced 0.67% an 0.73% respectively, while Barclays (LONDON:BARC) jumped 1.05% and HSBC Holdings (LONDON:HSBA) rallied 1.63%,
Mining stocks added to gains, as Glencore Xstrata (LONDON:GLEN) climbed 1.26% and Rio Tinto (LONDON:RIO) advanced 1.53%, while rivals Bhp Billiton (LONDON:BLT) and Antofagasta (LONDON:ANTO) surged 1.58% and 1.91% respectively.
Meanwhile, Shire (LONDON:SHP) led losses on the index for the second consecutive session, with shares plummeting 8.89% after AbbVie said on Wednesday that it may scratch the planned £32.4 billion acquisition of the U.K. drugmaker, citing changes in tax regulations.
In the U.S., equity markets pointed to a higher open. The Dow 30 futures pointed to a 0.43% gain, S&P 500 futures signaled a 0.51% climb, while the NASDAQ 100 futures indicated a 0.31% rise.
Later in the day, the U.S. was to release the weekly report on initial jobless claims as well as data on industrial production and manufacturing activity in the Philadelphia region.