Europe close: Stoxx 600 hits four-week high

(Sharecast News) - European stocks rose on Thursday despite weak retail sales data from the eurozone, with the Stoxx 600 hitting a four-week high. Markets across the continent pushed higher in the absence of trading on Wall Street, where equity markets were closed for a national day of mourning to honour former president Jimmy Carter.

The Stoxx 600 finished the day up 0.4% at 515.84, with small losses in Frankfurt outweighed by a decent performance elsewhere.

This was the highest closing level for the pan-European benchmark since 13 December after its sixth gain in the past nine trading sessions.

London's FTSE 100 was the best-performing index despite weakness in the retail sector after the pound continued to slump against the dollar with chancellor Rachel Reeves under pressure as her fiscal headroom diminishes. The pound slumped 0.4% to a 14-month low of $1.2308, and fell 0.2% against to euro to €1.1952.

The yield on benchmark 10-year UK debt was up 2 basis points in afternoon trade at 4.816%, having risen as high as 4.897% early on - its highest since 2008.

In economic news, eurozone retail sales grew by less than expected in November, official data showed on Thursday, as the bloc's economy continued to struggle. According to first estimates from Eurostat, retail trade volume increased by 0.1%. Although an improvement on October's 0.3% decline, it was below the 0.4% expected by analysts.

Market movers

UK retailers were under the cosh as investors gave a cool reaction to trading updates covering the key festive period. Bakery chain Greggs and discounter B&M Value Retail drop 14% and 9% respectively after disappointing with sales figures; even stronger-than-expected growth rates from retail giants M&S and Tesco were met with sell-offs of 8% and 1% respectively.

Heading the other way in London was banknote printer De La Rue, which surged 7% after saying it was considering a takeover offer from Disruptive Capital and Pension SuperFund Capital entities at 125p a share. "The board is considering its options," it said.

Danish medical equipment group Ambu was the high riser on the Stoxx 600, gaining 6% after an upgrade by Carnegie analysts from 'hold' to 'buy'.

Banking stocks across the continent were also performing well, with heavyweights HSBC, Bankinter, Commerzbank and UBS all putting in decent gains.