European Markets Open Higher on Robust China Data

European markets opened higher after China reported robust industrial output and retail sales data indicating that the global economy is stabilising.

Stoxx Europe 600 index opened up 0.3% at 306.84.

Britains FTSE 100 index was up 0.6% at 6,568.80. France's CAC 40 index opened 0.8% higher at 4,072.74 and Germany's DAX 30 index opened up 1% at 8,357.01.

The world's second-largest economy earlier reported better-than-expected industrial production and retail sales data for August. Industrial output rose 10.4% for the month, beating economists' expectations of 9.9%. Meanwhile, retail sales were up 13.4%, compared to analysts' view for a growth of 13.2%.

In addition, fixed asset investment in the country grew 20.3% year-on-year in the first eight months of the year, beating forecasts for a rise of 20.2%.

Earlier, the US and Europe reported upbeat industrial production figures, signalling that the global economy is stabilising.

Sentix research group said in a survey report that investor sentiment in the eurozone rose to 6.5 points, its highest level since May 2011, from -4.9 points in August. The headline index was showing the first positive reading since July 2011.

Asia and US Markets

European shares are also tracking gains on Wall Street and in Asia due to receding fears over a US-led military action against Syria.

Earlier, Wall Street closed higher after Syria welcomed Russia's proposal to put its chemical weapons under international control, abating fears of a US military intervention in the Middle East. However, the country did not say if it would comply with the proposal.

Oil prices, which shot up due to fears of a US attack on Syria, declined following the US pause, as the benchmark Brent crude fell 0.7% to $112.88 per barrel.

Asian economies, which largely meet their energy needs from imports, have also benefitted from the development.

Japan's Nikkei Average ended 1.5% up at 14,423.36. Australia's S&P/ASX closed at 5,201.2, up 0.38%. South Korea's Kospi was up 0.98% to 1,994.06 at closing.

India's BSE Sensex was trading up 2.72% to 19793.51. Hong Kong's Hang Seng was trading 0.53% higher to 22,870.17. The Shanghai Composite was trading 0.58% higher to 2,225.28.

Asian markets also benefited from expectations that the US Federal Reserve would not scale back its huge monetary stimulus significantly in the near term. US job data for the month of August has been disappointing and is not likely to allow the US central bank enough leeway to taper its bond buyback programme in a big way.

Notable Economic Events

Italy is due to report its gross domestic product data for the second quarter and France will report its industrial output data for the month of July.