Bright data shine on European stocks

A raft of upbeat economic data helped push up European equity markets on Friday, with London overcoming a dire Brexit warning from the IMF.

Frankfurt stocks won 0.9 percent as data showed that the German economy grew by a better-than-expected 0.7 percent in the first quarter of this year.

Paris advanced by 0.6 percent in value, aided also by separate figures showing the 19-member eurozone economy grew 0.5 percent in the same period.

London also managed a gain of 0.6 percent despite poor British construction data and after the International Monetary Fund warned again of "significant downside risks" from Britain's potential EU exit.

Markets in Europe had flatlined for most of the day but won a partial boost in afternoon deals from bright economic data in the United States.

"Markets are getting another boost this afternoon from the encouraging US retail sales figures. The number was much better than the already high expectations which has come as quite a shock to the markets," Oanda analyst Craig Erlam told AFP.

US consumers came back to stores in April, spending more than expected to reverse a worrisome stall in the first quarter of the year, Commerce Department data showed Friday.

But with April's gains mostly in auto sales and gasoline -- the latter due to rising prices -- the data in other categories was still not as robust as hoped.

Retail sales, including food services, jumped 1.3 percent from March, to $453.4 billion, and were up 3.0 percent from a year ago. Analysts had expected a 0.8 percent rebound from March.

"The overall market sentiment has slightly changed towards positive since the release of the latest US economic data," said Markus Huber, trader at City of London Markets.

Wall Street didn't get much of a boost, however, with the Dow down 0.08 percent approaching midday, as earnings from two major retailers were seen as disappointing.

"US stocks are lower in early action, though they have pared losses in the wake of a stronger-than-expected April domestic retail sales report, which is partially offsetting a decline in crude oil prices and more lackluster results from the retail sector, courtesy of results from J.C. Penney and Nordstrom," said analysts at brokerage Charles Schwab.

Nordstrom reported a 64 percent drop in first-quarter earnings to $46 million, while Penney saw comparable sales fall 0.4 percent during the period, sustaining a trend of weak retail earnings.

Nordstrom shares plunged nearly 15 percent in early trade but had cut the loss to around 11 percent by late morning.

Meanwhile, Penney lost 5.1 percent at the open but was showing a gain of 1.7 percent in late morning trade.

While London slipped into the red for much of the day, as the IMF warned that Britain's potential departure from the European Union posed a "significant downside risk" to the economic outlook, it climbed back in late afternoon trading.

IMF boss Christine Lagarde, unveiling the global lender's latest health check on the British economy just six weeks before Britain votes on whether to remain in the EU, added that Brexit could push the country into recession.

The latest warning comes as Prime Minister David Cameron campaigns fervently to keep Britain in the 28-nation EU in a referendum on June 23.

Asia stocks ended a choppy week with more losses Friday.

- Key figures around 1530 GMT -

London - FTSE 100: 0.6 percent at 6,138.5 (close)

Frankfurt - DAX 30: UP 0.9 percent at 9,952.90 (close)

Paris - CAC 40: UP 0.6 percent at 4,319.99 (close)

EURO STOXX 50: UP 0.7 percent at 2,956.66

New York - Dow: DOWN 0.08 percent at 17,705.74

New York - S&P 500: UP 0.1 percent at 2,066.12

New York - Nasdaq: UP 0.3 percent at 4,751.16

Tokyo: Nikkei 225: DOWN 1.4 percent at 16,412.21 (close)

Shanghai - Composite: DOWN 0.3 percent at 2,827.11 (close)

Hong Kong - Hang Seng: DOWN 1.4 percent at 19,633.77 (close)

Euro/dollar: DOWN at $1.1287 from $1.1377 Thursday

Dollar/yen: UP at 109.21 yen from 109.00 yen