European stocks open higher as sentiment improves; DAX up 0.78%

Investing.com - European stocks opened higher on Friday, as better-than-expected inflation data from China lifted market sentiment and as markets focused on upcoming U.S. economic reports, as well as a speech by Federal Reserve Chair Janet Yellen.

During European morning trade, the EURO STOXX 50 rallied 0.93%, France’s CAC 40 jumped 0.91%, while Germany’s DAX 30 gained 0.78%.

Data earlier showed that China’s consumer price index rose 0.7% in September, beating expectations for an uptick of 0.3%. Year-on-year, consumer prices increased 1.9% last month, compared to expectations for a 1.6% gain.

The positive report eased concerns over global economic growth after data on Thursday showed that China’s trade surplus narrowed to $41.99 billion in September from $52.05 billion the previous month. Analysts had expected the trade surplus to widen to $53.00 billion last month.

Equity markets had weakened on Thursday after the minutes of the Fed's September policy meeting released on Wednesday showed that several voting members of the policy committee judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen.

Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.24% and 1.43%, while Commerzbank (DE:CBKG) gained 0.62% and Deutsche Bank (DE:DBKGn) eased 0.09% in Germany.

Among peripheral lenders, Intesa Sanpaolo (MI:ISP) rose 0.22% and Unicredit (MI:CRDI) slid 0.48% in Italy, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) jumped 1.12% and 1.37% respectively.

Elsewhere, German chemical maker BASF SE (DE:BASFN) saw shares rally 1.19%, still supported by better-than-expected quarterly profit, released earlier in the week.

Vinci SA (PA:SGEF) added to gains, with shares climbing 1.05% after Vinci Energies, the subsidiary specialising in energy services and information and communication technologies, said on Thursday that it reached an agreement with Novabase to acquire its subsidiary Novabase IMS.

In London, FTSE 100 advanced 0.54%, as U.K. lenders tracked their European counterparts higher.

Shares in Lloyds Banking (LON:LLOY) climbed 0.67% and the Royal Bank of Scotland (LON:RBS) gained 0.87%, while Barclays (LON:BARC) advanced 1.11% and HSBC Holdings (LON:HSBA) rallied 1.45%.

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Meanwhile, mining stocks were mixed on the commodity-heavy index. Rio Tinto (LON:RIO) and Anglo American (LON:AAL) surged 2.51% and 2.61% respectively, while Antofagasta (LON:ANTO) lost 1.30% and Fresnillo (LON:FRES) tumbled 1.50%.

Tui AG NA (LON:TUIT) saw shares decline 0.84% amid reports it and Etihad Aviation Group are in talks to create a European leisure airline group, focused on flights that connect key tourist markets.

In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.02% uptick, S&P 500 futures showed a 0.07% rise, while the Nasdaq 100 futures indicated a 0.01% gain.