The French market is rallying in afternoon trading Wednesday, led by construction stocks and banks. An increase in manufacturing activity in China and firm cues from Asia cheered sentiment.
Crude for October delivery is trading higher by $0.82 at $72.74 per barrel and gold is gaining $4.8 at $1255.1 an ounce.
In economic news, French manufacturing activity rose at a faster-than-expected pace in August, Markit Economics said. The manufacturing PMI came in at a seasonally adjusted 55.1, up from 53.9 in July and also above the earlier estimate of 54.7.
German retail sales fell 0.3% in real terms in July from the prior month, the Federal Statistical Office said. Economists had expected a 0.5% rise in sales in July after falling by 0.3% in June. Year-on-year, retail turnover recorded a real growth of 0.8%, smaller than the 4.7% increase seen in June.
Yet another report showed that Germany's headline BME manufacturing PMI slid to 58.2 from 61.2 In July. The reading was unchanged from the flash PMI reading published earlier.
U.K. manufacturing activity fell to a nine-month low in August with rates of production as well as incoming new orders slowing, survey data showed. According to Markit Economics, the CIPS manufacturing purchasing managers' index came in at a seasonally adjusted 54.3, down from 56.9 in July.
In Eurozone, manufacturing activity fell to a six-month low in August. Markit Economics said the manufacturing PMI came in at a seasonally adjusted 55.1, down from 56.7 in July, but up from the earlier estimate of 55.0.
In China, manufacturing activity rebounded in August. Markit Economics said the HSBC manufacturing PMI stood at a seasonally adjusted 51.9, up from 49.4 in July.
The CAC 40 opened higher at 3,508 and remained in positive territory for most of the session. The index is currently adding 1.87%.
Construction stocks are seeing the upside on the index. Cement giant Lafarge is gaining 4.42%, Vinci is gaining 3.2%, Saint-Gobain is advancing 2.8% and steel maker ArcelorMittal is up 2.1%.. However, heavy construction company Bouygues is sliding 0.9%.
Media firm Vivendi is rising 4.4% and peer Lagardere is adding 0.6%. Grocery retailer Carrefour is climbing 3.1% and Airbus maker EADS is gathering 2.9%.
Lenders BNP Paribas, Societe Generale, Dexia and Credit Agricole are climbing between 2.8% and 1.2%.
Car manufacturers Renault and Peugeot are gaining 2.4% and 2.1%, respectively. Drug maker Sanofi-Aventis is gaining 2.1% and insurer Axa is adding 2.07%.
Elsewhere in Europe, the UK's FTSE 100 is gaining 1.28% and the German DAX is advancing 1%.
Across Asia/Pacific, most major markets rallied. Australia's All Ordinaries gained 1.98%, Japan's Nikkei 225 added 1.17% and India's BSE Sensex climbed 1.31%. However, China's Shanghai Composite Index lost 0.60%.
The U.S. futures point to a higher open on Wall Street. In the previous session, the Nasdaq slipped 0.3%, the Dow edged up less than 0.1% and the S&P 500 rose less than 0.1%.
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