European stocks mostly rise on bright data

European equity markets mostly rose on Friday, cheered by a raft of upbeat economic data, but London was hit by the IMF's latest Brexit warning, dealers said.

In afternoon trade, Frankfurt stocks won 0.6 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.

On the downside, London dipped 0.2 percent on 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.

"European investors seemed willing to indulge in cheer wherever they can find it, even if that comes into the form of a surprisingly strong set of US retail sales figures," noted Spreadex analyst Connor Campbell.

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.

"Somewhat lower producer prices and much better than expected retail sales are pretty much what the market needed."

Wall Street fell at the open, however, with the Dow slipping 0.2 percent, as earnings from two major retailers were 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. Nordstrom shares plunged 14.9 percent and Penney lost 5.1 percent, sustaining a trend of weak retail earnings resulting in investor punishment.

London slipped into the red as the IMF warned that Britain's potential departure from the European Union posed a "significant downside risk" to the outlook.

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, echoing comments from Bank of England (BoE) chief Mark Carney.

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.

British share prices were also dented by official data showing a surprise contraction in construction, in a sign that building projects are slowing down before the key referendum, dealers said.

Construction activity fell 3.6 in March, compared with the month before, the Office for National Statistics revealed.

Asia stocks ended a choppy week with more losses Friday following a negative lead from elsewhere, with Apple suppliers taking a hit after the tech giant's shares tumbled in US trade.

- Key figures around 1340 GMT -

London - FTSE 100: DOWN 0.2 percent at 6,093.64 points

Frankfurt - DAX 30: UP 0.6 percent at 9,921.18

Paris - CAC 40: UP 0.7 percent at 4,321.00

EURO STOXX 50: UP 0.4 percent at 2,946.66

New York - Dow: DOWN 0.2 percent at 17,690.23

New York - S&P 500: DOWN 0.1 percent at 2,061.88

New York - Nasdaq: FLAT at 4,737.51

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

Euro/dollar: DOWN at $1.1324 from $1.1377 Thursday

Dollar/yen: UP at 109.17 yen from 109.00 yen