EU STOCKS rise for second day after China data

European stock markets moved cautiously higher on Friday, taking inspiration from an upbeat trading session in Asia on data showing consumer prices in China rose at a slower-than-expected rate in July.

China’s industrial production rose 9.7% in July from a year ago, after expanding 8.9% the previous month. 

Also official data showed July consumer prices in China rose 2.7%, matching the rate in June but slightly weaker than expectations. Producer prices dropped 2.3%, after witnessing a 2.7% slide in June.

The Stoxx Europe 600 index  added 0.1% to 304.46.

The FTSE 100 added 0.26%, the CAC 40 retreated 0/06% and the Xetra DAX weakened 0.04%.

In UK Trade Balance data has beaten expectations across the board. The Total Trade Balance came in at GBP-1.54B/GBP-2.35B, The Goods Trade Balance GBP-8.082B/GBP-8.5B and The Trade Balance - non EU GBP-2.64B/GBP-3.8B.

UK economic forecasts have risen according to a monthly survey. Q3 2013 annualised GDP revised up to 1.1% from 0.8% Q4 2013 up to 1.8% from 1.4% Q1 2014 2.0% from 1.6% 2014 average at 1.7% from 1.6%

The median estimate of respondents saw a 10% chance of a recession over the next 12 months.

Shares of Royal KPN NV climbed 17% to 2.34 euros after Mexican telecom firm America Movil SAB de CV  said it plans to make an offer for the Dutch firm at €2.40 a share ($3.21).

Shares of Novozymes AS  lifted after the industrial enzymes producer reported a 13% rise in second-quarter profit.

Mining firms, which tend to rise on encouraging data from China, posted some of the biggest gains in Friday’s trade.

Shares of BHP Billiton PLC added 2%, Rio Tinto PLC also picked up 2% and Anglo American PLC  gained 2.5%.

Shares of Total SA, off 0.7%, weighed on the French index.

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