Europe midday: Stocks extend recent gains

Stocks on the Continent are extending their gains from earlier in the session, taking their cue from another session of record highs on Wall Street overnight.

The release of far stronger-than-expected readings on jobless claims and retail sales lay behind the latter, as they fed expectations for a big rebound in activity in 2021.

"European markets are hoping to end the week in positive fashion, with record highs in US indices transmitting into position price action in both Asia and now Europe," said IG senior market analyst Joshua Mahony.

As of 1301 GMT, the benchmark pan-European Stoxx 600 was ahead by 0.55% to 440.95, alongside a 1.05% advance for Germany's Dax to 15,415.81 while the FTSE Mibtel was up 0.29% to 24,599.50.

Not surprisingly, cyclical names were doing best, with the Stoxx 600s gauge for Autos and Parts companies ahead by 1.81% and that for Banks 1.17% higher.

The sector index for Basic Resources meanwhile was adding 1.15%, despite a slate of modestly weaker-than-expected activity data out of China for last month.

Nonetheless, analysts at Pantheon Macroeconomics said that Chinese economic growth should remain "elevated" in 2021, despite the "blemish" from soft fixed asset investment in March.

Back in European news, German Chancellor, Angela Merkel, is pushing for greater powers from lawmakers that would allow her to impose coronavirus lockdowns and curfews where needed in her country.

Euro area finance ministers are scheduled to meet via videolink at the end of the week.

The ongoing work to complete the bloc's Banking Union expected to be one of the main subjects under discussion at that gathering.

European Union Finance ministers will also meet on Friday, but to discuss the EU's economic recovery plan, including as regards the economic situation and outlook.