-LONDON AP) — European and U.S. stock markets traded in a narrow range Friday after a disappointing U.S. consumer sentiment survey offset the market impact of earlier better than expected retail sales data.
In Europe, the FTSE 100 index of leading British shares was up 8.39 points, or 0.2 percent, at 5,625.65 while Germany's DAX rose by 16.48 points, or 0.3 percent, to 5,945.11. The CAC-40 in France ended 1.55 point down at 3,927.40.
On Wall Street, the Dow Jones industrial average was up 103.6 points, or 0.1 percent, at 10,622.20 around midday New York time, while the broader Standard & Poor's 500 index fell 0.2 point to 1,150.04.
Sentiment was buoyed in the run-up to the U.S. open by the news that U.S. retail sales rose a monthly 0.3 percent in February. The increase was unexpected — the consensus in the markets was a decrease of around 0.2 percent partly because of the heavy snowfall witnessed on the East Coast during the month.
However, downward revisions to previous month's figures and a weak consumer confidence survey from the University of Michigan softened the mood in the markets and stocks came off day highs — its monthly gauge of consumer confidence unexpectedly fell to 72.5 in March from 73.6 the previous month and way down on the pre-recession level of 78.4.
"The lack of a clear break in the economic data either signaling acceleration in real growth or the start of a double dip has left investor questioning valuations after almost a year of rising equity markets," said Steven Ricchiuto, chief economist at Mizuho Securities.
Earlier, European stocks and the euro had been buoyed by the news that industrial production in the eurozone soared by a record 1.7 percent in January from the previous month and that December was now showing a 0.6 percent increase instead of a 1.7 percent fall. As a result, the annual rate turned positive for the first time since April 2008.
By late afternoon London time, the euro was 0.6 percent higher at $1.3765.
With the economic newsflow often contradictory, many stock market participants are looking at technical factors to see if the one-year rally continues. Many think the key will be whether the S&P 500 can sustain a break above 1,500 — something it has not been able to do for nearly a year and a half.
David Jones, chief market strategist at IG Index, thinks that next week's trading could well depend on whether the Dow Jones industrial average sustains its break above 10,600.
"This had proved quite a barrier to progress over recent days and a finish above here today could position global stock markets for more growth next week," said Jones.
Earlier, there was no clear direction in Asia, though Japan's Nikkei 225 stock average advanced 86.31 points, or 0.8 percent, to close at a seven-week high of 10,751.26.
The lackluster performance elsewhere was largely due to concerns that China may start raising interest rates and take other cooling measures to keep a lid on mounting inflationary pressures. The source of concern was a government report showing inflation in the fast-growing economy jumped to 2.7 percent last month.
Chinese shares led the declines in Asia, with Shanghai's index falling 1.2 percent. Investors there sold property shares on concerns higher-than-expected inflation might lead the government to hike in interest rates.
"Overheated industries, such as the real estate sector and some heavy industries, will be cooled as the government adjusts its macroeconomic policies, so those shares dropped heavily today," said Peng Yunliang, an analyst at Shanghai Securities in Shanghai.
Hong Kong's Hang Seng fell 0.1 percent at 21,209.74 and South Korea's benchmark gained 0.4 percent at 1,656.74.
Oil prices pushed higher as investors mulled whether extending a monthlong rally is justified amid evidence of weak U.S. crude demand. Benchmark crude for April delivery added 23 cents to $82.34.
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AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.
