Europe close: Stocks end week on an up note despite soft US economic data

European shares ran up on Friday, tracking gains on Wall Street despite slightly weaker-than-expected readings on economic activity in the US.

"It looks like a positive end to the week is in sight for risk assets, which have recovered from their inflation panic 48 hours ago. Stocks are advancing on a broad front, with advancers far outpacing the decliners in both New York and London," said IG chief market analyst Chris Beauchamp.

The pan-European Stoxx 600 index rose 1.19% to 442.53, together with a 1.43% jump for the German Dax to 15,416.64, while Spain's Ibex 35 was 2.0% higher at 9,145.6.

Credit Suisse global equity strategist, Andrew Garthwaite, was similarly sanguine, telling clients that stockmarkets were in a 'consolidation' mode and not a 'correction' - at least so long as 10-year US Treasury inflation break-evens didn't breach 3.0%.

Strikingly, Garthwaite pointed out the possibility that America's economy might be set to expand by 8.0-9.0% in 2021, instead of the 6.3% penciled-in by economists.

In equity news, despite the improved risk appetite, most miners' shares were on the back foot due to falling commodities prices, with BHP, Rio Tinto and Antofagasta all lower.

Stock in Sage on the other hand gained as the company said it expected annual organic revenue growth to be near the top of guidance after investment in its cloud operation prompted a decline in first half profit.