Europe open: Stocks rise as investors cheer Chinese inflation data

European stocks rose in early trade, underpinned by encouraging Chinese inflation figures which helped to ease concerns about the world’s second-largest economy.

At 0850 BST, the benchmark Stoxx Europe 600 index was up 0.7%, Germany’s DAX was up 0.6% and France’s CAC 40 was 0.5% higher.

Meanwhile, oil prices advanced. West Texas Intermediate was up 1.1% to $50.97 a barrel and Brent crude was 06% higher at $52.33.

Henry Croft, research analyst at Accendo Markets, said: “An increase in PPI and the highest CPI reading for the Chinese economy in five years has seemingly offset the negative export data reported in the early hours of Thursday morning.”

China’s headline consumer price index advanced at a 1.9% year-on-year clip in September, after a rise of 1.3% in August, as food price gains accelerated to 3.2% year-on-year from 1.3%.

Non-food price increases also quickened to a 1.6% pace - a two-year high - up from 1.4% the month before. Economists had forecast a gain of 1.6% in headline CPI.

Producer prices rose 0.1% year-on-year after declining by 0.8% in August, with a rise in industrial commodity prices responsible for the move.

Basic resources - which are heavily dependent on demand from China - reversed the previous session’s losses on the back of the data, with the Stoxx 600 sub-index for the sector up 1.7%.

In corporate news, hedge fund manager Man Group surged after reporting a jump in third-quarter funds under management and announcing an agreement to acquire real asset manager Aalto Invest Holding AG.

France's SFR gained ground as Altice said it had bought a 5.21% stake in the company, lifting its overall holding to above 82%.

On the downside, Software AG tumbled after posting a big drop in third-quarter earnings.

Infosys was also in the red after reporting a 6.1% rise in second-quarter net profit but downgrading its outlook for the year.

On the data front, Eurozone trade balance figures are at 1000 BST. In the US, retail sales are at 1330 BST, while business inventories and University of Michigan sentiment are at 1500 BST.

US earnings will also be eyed later in the session with banking heavyweights JPMorgan Chase, Citigroup and Wells Fargo all slated to report.