Europe midday: Stocks turn higher as investors shrug off disappointing data

At midday, the benchmark Stoxx Europe 600 index was up 0.2%, France’s CAC 40 was 1% higher and Germany’s DAX was 0.9% firmer.

London’s FTSE 100 was down 0.3% after the Bank of England kept its key interest rate on hold at 0.5%, as widely expected.

During a speech in Milan, Draghi said the current quantitative easing programme has been “undoubtedly effective” so far, but also reiterated that it will be reassessed next month.

He added that even if easing does come to an end, the ECB would still have “many tools” at its disposal.

Overnight, Federal Reserve chairwoman Janet Yellen said before the House financial services committee that the US economy was performing well and a rate hike next month was still a “live possibility”.

"The committee does feel that moving in a timely fashion if the data and outlook justify such a move is a prudent thing to do because we will be able to move at a more gradual and measured pace," Yellen said.

Her comments soured the mood on Wall Street, pushing stocks to a weaker close.

But European markets proved resilient on Friday, with investors choosing to look past some downbeat macro news.

Data released earlier by Destatis showed German factory orders unexpectedly fell in September, by 1.7% month-on-month versus expectations for 1% growth.

Elsewhere, figures from Eurostat showed Eurozone retail sales declined unexpectedly in September.

Sales in the euro area fell 0.1% month-on-month compared with analysts’ expectations for a 0.2% gain and a flat reading in August.

There was a number of bright spots on the corporate front, with pharmaceuticals giant AstraZeneca a standout gainer on the FTSE 100. Although third-quarter revenues were hit by foreign exchange movements, investors cheered its decision to upgrade the revenue outlook for the year.

RSA Insurance was also on the front foot after posting a 1% rise in underlying premium income in the first nine months of the year and saying its turnaround plan is on track.

Vestas Wind Systems advanced after its third quarter operating profit came in ahead of expectations and the company lifted its profit outlook for the year, while Societe Generale rallied as it said third quarter income grew 2.4%.

Sportswear company Adidas pushed up after raising its full year sales outlook and posting better-than-expected third quarter sales growth.

Adecco fell sharply, however, after the staffing group reported a surprise half-billion euro net loss in the third quarter on impairments.

UK supermarket retailer William Morrison was also under the cosh as it said third quarter like-for-like sales fell at a faster rate than in the previous quarter and worse than expectations.

Still to come, investors will eye the release of US nonfarm productivity and initial jobless claims are at 1330 GMT.