(MENAFN- AFP) Global equities moved ahead Thursday as another raft of weak US economic data reinforced expectations that the Federal Reserve will likely delay an interest rate hike.
European and Asian stocks advanced from recent losses that had been sparked by concerns over the potential impact of China's economic slowdown.
"It's been a more positive start to the day on Thursday, with UK and European shares higher after three days of losses," said analyst Jasper Lawler at traders CMC Markets.
"The weak data seen from the US, notably the disappointing retail sales, has actually increased certainty because a Federal Reserve rate hike this year now seems highly unlikely."
US retail sales rose by half as much as expected in September, while August was revised down, official data showed Wednesday.
In addition, the Fed's closely-watched Beige Book report said while expansion continued modestly, the stronger dollar in recent months was "restraining manufacturing activity as well as tourism spending".
The news comes after a below-par jobs report at the start of the month adding to a sense that the world's biggest economy is stuttering, giving the Fed more reason to hold off a rate rise.
''What bad news there is I think people are getting more confident that it can be dealt with by leaving policy looser for longer,'' said Ben Kumar, who helps oversee about $14 billion as an investment manager at Seven Investment Management in London.
''There are some decent earnings reports coming through; there are some bad ones too, but that's OK,'' Kumar told Bloomberg News.
- Liquidity tap left on -
The Fed has held its key rate locked near zero, at an unprecedented low of 0-0.25 percent, since December 2008 in order to stimulate economic growth.
The path of American interest rates is vital for global markets because the United States is the world's biggest economy.
"No rate hike keeps the liquidity tap on," noted VTB Capital economist Neil MacKinnon.
Mid-afternoon, London's benchmark FTSE 100 index was up 0.96 percent to 6,329.67 points compared with Wednesday's close.
Frankfurt's DAX 30 climbed 1.37 percent to 10,051.92 points while the Paris CAC 40 rose 1.29 percent to 4,668.34.
US stocks began slightly higher, the Dow Jones Industrial Average up 0.17 percent at 16,952.74 five minutes after opening.
The broad-based S&P 500 rose 0.36 percent to 2,001.43, while the tech-rich Nasdaq Composite Index added 23.68 at 4,806.53.
In foreign exchange, the European single currency dipped to $1.1365, from $1.1469 late in New York on Wednesday.
Mining share prices were mixed after posting early gains on a recovery in commodity prices.
Troubled resources giant Glencore was off 0.63 percent mid-afternoon at 1219.25 pence, whereas fellow miner Antofagasta added 1.03 percent to 586.507 pence.
The biggest loser was Britain's luxury fashion group Burberry, whose share price collapsed after admitting that demand had been hit by China's slowdown.
Burberry shares were off 8.17 percent at 1,303 pence, having bottomed out earlier in l;osing 10.85 percent.
Sales flatlined at £1.105 billion ($1.704 billion, 1.485 billion euros) in the six months to September compared with £1.1 billion a year earlier, said Burberry, which is famous for its trench coats and signature accessories.
In Asia Thursday, Seoul closed 1.18 percent higher, Tokyo added 1.15 percent and Sydney gained 0.63 percent.
Shanghai finished 2.32 percent higher after the country's three major telecoms firms on Wednesday announced plans to share control of a new company grouping their signal towers and other assets.
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