Euro stock close higher on solid U.S. data; DAX up 0.26%

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During European morning trade, the EURO STOXX 50 edged up 0.05%, France’s CAC 40 added 0.28%, while Germany’s DAX 30 rose 0.26%.

European stocks closed higher Wednesday despite the release of weak euro zone retail sales data and a disappointing Spanish debt auction as solid U.S. numbers supported sentiment.

Launching the rally, U.S. non-farm productivity rose more than initially expected in the third quarter, while unit labor costs declined sharply, revised data showed on Wednesday.

In a report, the U.S. Bureau of Labor Statistics said non-farm business sector labor productivity rose by a seasonally adjusted 2.9% in the third quarter, above expectations for a gain of 2.7% and up from a preliminary estimate of a 1.9% increase.

The report also said unit labor costs fell by a seasonally adjusted 1.9% in the third quarter, compared to expectations for a 0.9% decline and down from an initial estimate of a 0.1% drop.

Government data earlier indicated retail sales in the euro zone dropped by 1.2% in October, far more than the expected 0.1% decline, after a 0.6% fall the previous month.

In addition, Spain raised EUR4.3 billion at an auction of government debt, falling short of the target of EUR4.5 billion.

But sentiment remained supported after Greece launched a scheme to buy back debt from private investors on Monday, as part of an agreement to reduce its debt load and unlock a new bailout package worth EUR44 billion.

Financial stocks remained broadly higher, as shares in French lenders BNP Paribas and Societe Generale rose 0.32% and 0.25%, while Germany’s Deutsche Bank and Commerzbank rallied 1.30% and 2.24% respectively.

Peripheral lenders were also on the upside, as Italian banks Unicredit and Intesa Sanpaolo added 0.21% and 0.30%, while Spain’s BBVA and Banco Santander advancd 0.58% and 0.05%.

Elsewhere, Nokia Oyj soared 7.11%, after the Finnish mobile-phone maker unveiled a version of its flagship smartphone for China’s largest wireless carrier, China Mobile Ltd.
In London, commodity-heavy FTSE 100 added 0.15%, supported by sharp gains in oil and mining stocks, while data showed that the service sector expanded at the slowest pace in almost two years in November.

Oil and gas major Anglo American saw shares rally 3.34%, while rival BP dropped 0.68% on the other hand, erasing earlier gains.

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