Europe open: Stocks rise as China data sparks stimulus hopes
European stocks rose in early trade, taking their cue from an upbeat session in Asia as soft Chinese data prompted hopes of more stimulus from Beijing.
At 0840 GMT, the benchmark Stoxx Europe 600 index was up 1.9%, while France’s CAC and Germany’s DAX were both 2.2% higher.
Shares in Asia ended in the black, with China’s Shanghai Composite up 3.2% and Hong Kong’s Hang Seng 2.1% firmer.
Figures showed China’s economy grew 6.8% in the fourth quarter from the previous year, down from 6.9% in the third quarter and marking its slowest growth since 2009.
Full-year growth, meanwhile, fell to 6.9%, which was it lowest level since 1990 and a touch below expectations.
Industrial production was up 5.9% in December year-on-year, just shy of economists’ expectations for a 6% increase.
Retail sales for December also disappointed, up 11.1% on the year, down from 11.2% in November.
“While these numbers are slightly disappointing they don’t point to a sharp slowdown, however it does raise the question as to what further steps to stimulate the economy policymakers will take in the coming weeks,” said Michael Hewson, chief market analyst at CMC Markets.
On the corporate front, Renault was on the front foot on news that the French car maker will recall more than 15,000 vehicles to bring them in line with emissions standards.
German online clothing retailer Zalando was a high riser after posting 30% growth in fourth quarter revenue.
In London, Prudential gained after the insurer said its solvency capital ratio was 190% at end-June, a little better than expected. The group also appointed a new UK head.
On the downside, Novozymes slumped after the Danish enzyme maker cut its longer-term sales forecasts.
In macroeconomic news, data released earlier on Tuesday showed consumer prices in Germany were unchanged in December from the previous month, and up 0.2% on the year.
Still to come, investors will be eyeing Eurozone inflation and the German ZEW survey at 1000 GMT. In the US, the NAHB housing market index is at 1500 GMT.