U.S. retail sales give world stocks another lift

LONDON — European stock markets and Wall Street futures rose Friday after better than expected figures for U.S. retail sales and eurozone industrial production helped ease concerns about the pace of economic recovery.

The FTSE 100 index of leading British shares was up 23.33 points, or 0.4 percent, at 5,640.59 while Germany's DAX rose by 52.19 points, or 0.9 percent, to 5,980.82. The CAC-40 in France was 21.04 points, or 0.5 percent, higher at 3,949.99.

Wall Street was poised for a solid open — Dow futures were up 45 points, or 0.4 percent, at 10,593 while the broader Standard & Poor's 500 futures rose 5.8 points, or 0.5 percent, to 1,151.70.

Sentiment was buoyed in the run-up to the U.S. open by the news that U.S. retail sales rose a monthly 0.3 percent in February. The increase was unexpected — the consensus in the markets was a decrease of around 0.2 percent partly because of the heavy snowfall witnessed on the East Coast during the month.

The figures are particularly important because they shine a light on the state of consumption in the U.S., a key driver of growth. The U.S. retail spending accounts for around 70 percent of the world's largest economy.

Earlier, European stocks and the euro had been buoyed by the news that industrial production in the eurozone soared by a record 1.7 percent in January from the previous month and that December was now showing a 0.6 percent increase instead of a 1.7 percent fall. As a result, the annual rate turned positive for the first time since April 2008.

"A much stronger than expected report injected enthusiasm into the euro and European stock markets," said Jane Foley, research director at Forex.com.

By mid afternoon London time, the euro was 0.8 percent higher at $1.3786.

On Thursday, the S&P 500 advanced 0.4 percent, to 1,150.24, above its Jan. 19 close of 1,150.23 — many analysts think the index's break above the 1,150 mark could augur further gains. The S&P now stands at its highest level since Oct. 1, 2008.

David Jones, chief market strategist at IG Index, thinks that next week's trading could well depend on whether the Dow Jones industrial average sustains its break above 10,600.

"This had proved quite a barrier to progress over recent days and a finish above here today could position global stock markets for more growth next week," said Jones.