European Stocks Mixed

By Jaya Matta 

European stocks were mixed Friday as investors weighed up encouraging economic data from China against disappointing industrial production numbers from France, however moves were muted as a light economic calendar combines with the holiday season. 

At 0845 GMT, the DAX traded 0.2% lower, the FTSE 100 up 0.2% and the CAC-40 slipped 0.2%. 

Reinforcing Thursday's upbeat trade data, China's industrial output rose 9.7% on-year in July, accelerating from an 8.9% on-year increase in June, and beating economists' expectations of more modest 9% growth. 

Elsewhere, retail sales in China rose 13.2% in July from a year earlier and the country's consumer price index was unchanged on the month in July. 

"Commodity prices are highly correlated with expected Chinese demand and have been quite volatile in recent months; however with more consistent data coming through in China this is likely to provide an optimistic backdrop for the sector which should have a very positive impact for U.K.-listed global mining companies," said Rebecca O'Keeffe, head of investment at Interactive Investor. 

Basic resources led the gains in Europe, with the Stoxx 600 index for the sector rising 1.5% in early trading. U.K. listed Randgold Resources topped the FTSE 100, rising 3%. Fresnillo, Vedanta Resources and Anglo American were also among the top gainers. 

Data from France were less encouraging. /economist

Industrial production in the euro zone's second largest economy fell 1.4% in June from May, while economists polled by Dow Jones Newswires had expected a 0.1% rise in industrial output in June. Output in manufacturing alone contracted 0.4%. 

"Today's report shows that there are still pockets of weakness in the euro zone industrial sector," said Annalisa Piazza. 

"Although the euro-zone economy seems to have bottomed out, signs that a sustainable recovery is on its way are not clear yet and a bumpy road ahead has to be expected," Ms. Piazza said. 

Elsewhere, the U.K.'s FTSE 100 index was largely unchanged after trade data showed goods exported hit a record high in the second quarter. Sterling stayed steady on the release. 

Meanwhile, in corporate news shares in Dutch carrier Royal KPN soared after it said it will consider a buyout offer from Mexican telecommunications heavyweight America Movil. 

U.K. supermarket chain Tesco said it's in talks with China Resources Enterprise to form a joint venture in China, where foreign retailers have struggled to expand market share. Shares gained 1%. 

On the data front, U.S. wholesale inventories are due at 1400 GMT.