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Europe close: Stocks track gains on Wall Street amid 'dovish' ECB-speak
Stocks on the Continent finished higher, as trading on Wall Street got off to a positive start on the back of multiple strong updates on the US economy and a dip in the euro alongside some downwardly revised Eurozone CPI data and some 'dovish' ECB-talk.
Also helping sentiment, the White House denied speculation of an imminent departure of US National Security adviser H.R. McMaster, with the denial coming close on the heels of a reported 'truce' between the US president and his chief of staff, John Kelly.
On that note, earlier in the day, Mike van Dulken at Accendo Markets had told clients: "US sentiment suffering from talk of yet another White House departure (Nat Sec Advisor McMaster?) to keep the revolving door spinning, and the Trump organisation being subpoenaed by Spec. Counsel Mueller about Russia."
For his part, David Madden at CMC Markets UK chipped in: "The fear that the US and China would engage in a trade war weighed on stocks during the week, but that uncertainty has lifted for now. As it is potentially going to be a US-instigated trade war, European dealers are taking their cues from US indices."
Against that backdrop, by the closing bell the benchmark Stoxx 600 was ahead by 0.22% or 0.83 points to 377.71, alongside a rise of 0.36% or 44.02 points to 12,389.58 for the German Dax with the Cac-40 up by 0.29% or 15.49 points at 5,282.75.
In parallel, euro/dollar was down by 0.23% at 1.2280.
There was little on the economic front in the euro area at the end of the week, although Eurostat's revised CPI reading for February didn't fail to surprise.
February's preliminary reading of 1.2% year-on-year on headline CPI was revised down to show a gain of 1.1% (consensus: 1.2%).
On a more positive note, 'core' CPI was unrevised at up by 1.0% year-on-year.
Nevertheless, economists at Barclays Research said: "The February print suggests that both core goods and services components will continue to improve only very gradually while also suggesting that downside risks have increased lately, albeit for different reasons."
Very much related to the above, in an interview with Reuters European Central Bank chief economist Peter Praet said the debate was now open as to whether the euro area's rate of potential growth was improving, which would entail a shallower path for interest rate increases.
Stateside, the Federal Reserve reported a 1.2% jump in industrial output for February amid a record 12% year-on-year increase in oil and gas extraction. That was accompanied by an increase in the University of Michigan's consumer confidence gauge for March to its loftiest reading since 2004.
To take note of as well, Fitch Ratings was scheduled to publish the results of its review of Italy's sovereign bond rating after the close of markets in London.
On the company side of things, German group Linde said Brussels had suspended a review of its proposed merger with rival Praxair until it receives the information it has requested, but expects the suspension to be lifted next week.