By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Upbeat growth data from China and a
strong prior-day session on Wall Street helped lift European stock
markets on Friday, with the benchmark index on track for a seventh
straight day in positive territory.
The Stoxx Europe 600 index climbed 0.5% to 317.69, flirting with
the highest level in more than five years.
Shares of L'Oréal SA gained 2.8% after Shiseido Co. said it has
entered exclusive talks to sell two of its Paris-based cosmetics
businesses to the bigger French rival.
Shares of Anglo American PLC fell 1.4% after the miner released
a mixed production update for the third quarter with copper,
diamond and nickel output up, but iron ore down.
OMV AG dropped 1.9% after the oil refiner said political unrest
in North Africa took its toll on hydrocarbon-production levels in
the third quarter.
For the broader European markets, investors were inspired by
news from China, where data showed economic growth picked up 7.8%
in the third quarter. The reading was higher than some analyst
estimates, but in line with average expectations from a Reuters
survey of economists.
However, more-recent statistics for September suggest a mild
slowdown is under way, with growth for industrial production,
retail sales and construction activity all slipping. "While one
should always be a bit skeptical about Chinese growth data, the
current picture is supported by a rise in industrial production as
well as development in electricity production. Interestingly, the
current activity data are stronger than the PMIs suggest," analysts
at Danske Bank said in a note.
"This is not the first time this has happened, though, and it
may indicate some upside risk to PMI in coming months. We look for
growth to keep a robust pace in coming quarters but to lose steam
during 2014," they added.
Analysts at Nomura were more bearish on the Chinese growth story
and said they expect GDP growth to slow to 7.5% year-on-year in the
fourth quarter and 6.9% in 2014.
In the U.S., the S&P 500 index (SPX) managed a record finish
on Thursday as Wall Street turned from the latest fiscal drama on
Capitol Hill to corporate earnings.
U.S. stock futures pointed to a higher open on Friday.
In Europe, Germany's DAX 30 index added 0.2% to 8,832.39.
France's CAC 40 index picked up 0.7% to 4,268.66, while the U.K.'s
FTSE 100 index rose 0.5% to 6,607.15.
Outside the major indexes, shares of Svenska Cellulosa AB jumped
5.4% after the paper and hygiene-products producer reported a rise
in third-quarter profits and beat expectations.
Yara International ASA added 2.7% after the Norwegian firm said
fertilizer deliveries were up 17% in the third quarter due to
higher sales in Brazil.
Schindler Holding Ltd. climbed 4.8% after announcing a share
buyback program.
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