Europe close: Economic data saps strength in stocks before weekend

European equities wavered on Friday in fairly quiet trade, as market participants took in the latest economic numbers out of the Eurozone and China.

Weaker than expected figures on US retail sales and factory gate inflation did little to help matters, although the University of Michigan's preliminary gauge of consumer expectations for August did improve.

The benchmark Stoxx Europe 600 index was 0.16% or 0.57 points lower by the closing bell, France’s CAC 40 drifted 0.08% lower and Germany’s DAX was off 0.27%.

Oil prices on the other hand were higher again. West Texas Intermediate crude oil futures advanced 1.92% to $44.34 a barrel and Brent crude was 1.48% stronger to $46.73.

Dave Jeal, head of investment products at Interactive Investor, said: “With little by way of financial indicators to drive the market at present, expect more of the same, overall steady, outlook over the short-term whilst bursts of opportunity to be found below the surface: keeping a close eye on the detail could make it your perfect summer.”

On Thursday, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all set fresh records, underpinned by well-received results from retailers Macy's, Kohl's and Nordstrom.

Investors were also digesting data showing industrial output and retail sales in China missed expectations in July, although the figures were largely shrugged off in Asian trade.

Retail sales were up 10.2% on the year, down from 10.6% growth the month before and below expectations of 10.5%. Industrial production in the world’s second-largest economy grew 6% on the year, down from 6.2% the month before and falling short of estimates of 6.1% growth.

Elsewhere, fixed asset investment growth came in at 8.1% on the year for January to July, missing expectations of 8.8%.

In European macroeconomic news, Eurozone gross domestic product rose by 0.3% in the second quarter, confirming preliminary estimates and in line with economists’ forecasts, according to data released by Eurostat.

Compared with the same quarter last year, seasonally-adjusted GDP was up 1.6%, also as expected.

In the EU-28 group of nations, GDP grew 0.4% on the quarter and 1.8% compared with the second quarter of last year.

Germany saw 0.4% growth in the second quarter, with Spain’s GDP up 0.7% and the Netherlands' expanding 0.6%.

Meanwhile, Eurozone industrial production rose a touch more than expected in June, according to Eurostat.

Industrial production was up 0.6% from May versus expectations for a 0.5% increase. Production of capital goods was up 1.3%, while durable consumer goods output rose 1% and non-durable goods production was 0.7% higher. The production of intermediate goods and energy fell by 0.2% and 0.6%, respectively.

On the year, production was up 0.4%, missing expectations of a 0.7% increase.

In the EU-28 group of countries, industrial production was 0.5% higher on the month and on the year.

Corporate news was thin on the ground on Friday.

Moller-Maersk rallied after the Danish shipping and oil company’s second-quarter earnings topped analysts’ expectations.

Drax got a boost after HSBC upgraded the stock, while Zalando benefited from a target price lift from Exane BNP Paribas.