European stocks rally awaiting US data

European stock markets rebounded Friday, with London's benchmark index headed back towards its record-high level on upbeat Chinese data, as investors looked ahead to US retail figures.

The death of Thailand's king meanwhile sparked bargain-buying in the country after Bangkok stocks suffered sell-offs in his final days.

Europe's rally Friday "has probably taken many people by surprise, although this shouldn't be the case given that the markets in both the UK and US are still very close to their all-time highs", said Forex.com analyst Fawad Razaqzada.

London's FTSE 100 index this week hit an intra-day high of 7,129.83 points, fuelled by a plunging pound in the wake of Britain's vote earlier this year in favour of quitting the European Union.

"There is a reason why the markets are still elevated despite all the doom and gloom out there, and it continues to be this: cheap central bank money," Razaqzada added.

The situation could soon change however, if only in the US, as the Federal Reserve prepares to possibly hike interest rates before the end of the year.

"Focus will very much be on the US as we see out the end of the week," said Oanda senior market analyst Craig Erlam. 

"The US retail sales number stands out... as being the key release."

He added: "A weaker reading, especially if combined with a poor retail sales figure for September, could worry investors and force them again to reassess December rate hike chances."

Ahead of the US numbers, Beijing said China's producer price index rose last month after 54 consecutive months of falling -- providing some much-needed hope for the Chinese economy a day after market-sapping trade figures.

Chinese firms have for years been battered by falling prices for their goods in the face of chronic overcapacity and weak demand, putting a damper on growth in a key driver of the world economy.

Consumer prices also rose more than expected.

"Markets were in more positive spirits on Friday," said CMC Markets analyst Jasper Lawler. 

"Higher than expected inflation data (from China) has unwound some of the global growth concerns brought about by its ugly trade data."

- Thai stocks, baht bounce -

The Thai king's death this week saw a recovery in the country's stocks Friday, but analysts warned uncertainty over the nation's future without its uniting figure posed fresh risks for an economy already battered by a decade of political turmoil.

Thai stocks plunged around six percent this week and the baht lost around three percent as investors grew uneasy about political and economic stability following the death of the monarch who reigned for seven decades.

In Seoul, Samsung Electronics rose 1.3 percent as investors brushed off its warning that it expects another $3.0-billion-plus hit to profit over the next two quarters owing to the impact of its exploding Note 7 crisis.

It said it hoped a pick-up in sales of its other flagship handset would help cushion the impact.

The warning came two days after it slashed its operating profit outlook for the third quarter by $2.3 billion as it announced it was scrapping the model entirely.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.8 percent at 7,030.78 points

Frankfurt - DAX 30: UP 1.6 percent at 10,581.92 

Paris - CAC 40: UP 1.8 percent at 4,486.34 

EURO STOXX 50: UP 1.8 percent at 3,027.48 

Tokyo - Nikkei 225: UP 0.5 percent at 16,856.37 (close)

Hong Kong - Hang Seng: UP 0.9 percent at 23,233.31 (close)

Shanghai - Composite: UP 0.1 percent at 3,063.81 (close)

New York - DOW: DOWN 0.3 percent at 18,098.94 (close)

Euro/dollar: DOWN at $1.1018 from $1.1056 Thursday

Dollar/yen: UP at 104.22 yen from 103.66 yen

Pound/dollar: DOWN at $1.2224 from $1.2253 

Euro/pound: DOWN at 90.12 pence from 90.25 pence

Oil - West Texas Intermediate: UP 52 cents at $50.96 per barrel

Oil - Brent North Sea: UP 34 cents at $52.37

Source: AFP