- Chinese data beats forecasts
- Obama soothes fears over Syria military strike
- Italy's economy shrinks more than initial estimate
FTSE 100: 0.70%
CAC 40: 1.31%
FTSE MIB: 0.51%
IBEX 35: 1.37%
Stoxx 600: 1.12%
European stocks rose as Chinese economic data beat expectations and the US said it will delay a military strike in Syria if it relinquishes chemical weapons.
China's industrial production climbed by 10.4% in August compared to a year ago, beating the forecast for a 9.9% rise.
Retail sales in China increased an annual 13.4% in the month, above market expectations for a 13.2% incline.
The reports signalled a recovery in the world's second largest economy after its recent slump.
"Today's data releases give further evidence that China's economy is picking up speed," said Capital Economics.
"But the rebound is skewed towards investment, with state-led spending on infrastructure particularly strong. The latest figures also suggest that the slowdown in credit growth has levelled out."
In another lift to global stocks, US President Barack Obama said he will defer any military action in Syria if the Assad regime agreed to place chemical weapons under international control.
His statement came after Russia proposed that Syria give up its chemical weapons in return for avoiding strikes from the US.
Syria has welcomed the proposal.
The US has been debating an intervention in Syria after accusing the government of using chemical weapons against civilians on August 21st.
Syrian President Bashar Hafez al-Assad continues to deny the claims.
Italy's economy contracts, revised GDP reveals
Italy's economy shrank more than initially estimated in the second quarter reflecting weakness in consumer demand.
Gross domestic product (GDP) fell 0.3% from the previous quarter, according to national statistics institute Istat, compared to the August 6th reading of a 0.2% contraction.
Consumer spending dropped 0.4%, offsetting a 1.2% rise in exports.
Glencore Xstrata lifts synergy target
Glencore Xstrata rallied after the miner lifted its synergy target from its merger and vowed to cut costs.
Banco de Sabadell declined after the Spanish bank said it would initially raise as much as €650m through accelerated bookbuilding.
Ashmore Group surged after the UK fund manager reported a full-year pre-tax profit and revenue that exceeded estimates.
GlaxoSmithKline slumped after drafted guidelines published by the US Food and Drug Administration called for tests and clinical trials on generic replacements to drugs such as Advair.
Neste Oil rose as the Finland refiner said comparable operating profit will increase to more than €530m in 2013 compared to last year's €355m.
easyJet and International Consolidated Airlines soared as airline stocks benefited from a drop in oil prices
after concerns over an imminent strike in Syria eased.
Brent crude futures slid $0.300 to $113.380 per barrel on the ICE.
The euro fell 0.09% against the 1.3243 US dollar.