Europe midday: Stocks rally as EZ trade deficit slashed; Nokia, Ericsson slide

European stock markets clawed into positive territory on Friday, as the eurozone almost wiped out its trade deficit in May.

The pan-regional Stoxx 600 index was up 0.09% with only Germany's DAX in the red. Stocks have gained this week on the back of US data showing inflation and producer prices both came in cooler than expected and suggested a significant slowdown in inflation in the world’s largest economy.

The eurozone's trade deficit was almost eliminated in May, according to non-adjusted data published on Friday, as exports of chemicals and machinery picked up imported energy products fell. The seasonally-unadjusted trade balance was a €0.3bn deficit in May compared with a €30.3bn shortfall a year earlier.

Oil prices rose beyond $80 a barrel driven by supply disruptions in Libya and Nigeria and slowing Russian output.

In equity news, shares in Nokia slumped as the Finnish telecoms giant cut its annual outlook, while Swedish rival Ericsson was also out of favour as it reported plunging quarterly profits on the back of a slowdown in consumer spending.

Shares in Swedish firm Lifco plunged 11% after half-year results, while Norwegian conglomerate Orkla rose 5% after an incrase in second quarter operating revenues.

Asset manager Ashmore fell 6.5% after reporting a $1.8bn decease in assets under management for the quarter to end-June, saying investors had cut exposure to emerging markets against the uncertain global macroeconomic backdrop.

Reporting by Frank Prenesti for Sharecast.com