Europe open: Credit Suisse leads bounce higher

Stocks in Europe started the morning off higher following stronger-than-expected inflation data out overnight in China.

As of 09:03 BST the benchmark DJ Stoxx 600 was up by 1.17% to 337.11, alongside gains of 0.77% to 10,063.7 for Germany's Dax and an advance of 0.85% to 4,362 for Paris's Cac-40.

Consumer prices in the People's Republic of China held steady at 2.3% year-on-year in April, for a fourth consecutive month, as expected by analysts.

However, factory gate deflation decreased from -4.3% year-on-year in March to 3.4% in April, as energy prices rebounded.

"Following 26 straight months in negative territory, the m/m change in producer prices was positive in March and April, which should ease concerns over deflation," Julian Evans-Pritchard at Capital Economics said in a research report sent to clients.

Acting as a backdrop, euro/dollar was roughly steady, advancing by 0.09% to 1.1393. In parallel, front month Brent crude futures were up by 0.57% to $43.88 per barrel on the ICE.

Weak French IP

The move higher came despite weaker than expected readings on industrial production out of Germany, France and Italy.

Output in Germany, arguably the Eurozone's growth engine, shrank by 1.3% month-on-month in March, exceeding forecasts for a 0.2% dip by a wide margin.

Nonetheless, over the first quarter of the year as a whole output jumped by 1.8%, rebounding from a 0.3% fall in the final three months of 2015, Pantheon Macroeconomics said.

"This points to a strong GDP print later this week, and suggests that the consensus’ prediction of an upbeat 0.6% quarter-on-quarter is within reach."

French industrial production shrank by 0.3% month-on-month in March (consensus: 0.7%).

That was consistent with a quarterly drop for industrial output of 0.6% and a possible downward revision in the rate of growth for first quarter gross domestic product from 0.5% to 0.4% in terms of quarterly rates of change, analysts at Barclays said.

In Italy, industrial production was flat over the month in March but 0.7% higher over the first quarter as a whole.

Investment bank Credit Suisse was leading to the upside in the corporate space.

The Swiss outfit reported a 302m Swiss franc loss for the first quarter of 2016 - its first loss since 2008 - but nevertheless besting the 344m franc loss estimated by analysts, although it meant a sharp drop from the 1.05bn francs recorded in the comparable period of a year ago.

Helping the shares along, chief Tidjane Thiam expressed confidence in his ability to deliver the cost cuts promised for the year ahead.

Thyssenkrupp was under the cosh after slashing its full-year forecasts because of the drop in prices for its products, including steel, which were deeper and longer than it had anticipated.