European Stocks Climb

LONDON�Solid trade data from both China and the U.S. spurred a push into riskier assets, sending European stocks higher.

The Stoxx Europe 600 index rose 1.2% to close at 287.34, led by the banking sector. The gains, however, weren't enough to push the index into positive territory for the week, leaving it with a 0.3% weekly decline.

"After a buoyant few weeks for global investment markets, investors were given a gentle�yet timely�reminder this week that the euro zone's persistent debt problems hadn't gone away, [but that] they've simply been bubbling away just beneath the surface," Oliver Wallin, investment manager at Octopus Investments, said in a note.

He was, however, still positive on the prospects for 2013, although slightly cautious.

Among individual stocks, Telecom Italia fell 1.3%. The firm said it didn't meet its 2012 targets for gross operating profit and net debt reduction.

SSAB slumped 5.1%, after the Swedish steelmaker posted a wider-than-expected operating loss in the fourth quarter and cut its dividend.

Vodafone Group gained 1.2% after Bank of America Merrill Lynch lifted the wireless-telecom firm to "buy" from "neutral".

DNB rose 4.6% as Credit Suisse lifted the Norwegian bank to "neutral" from "underperform" following a better-than-expected earnings report earlier in the week.

The broader European gains came as investors took inspiration from a mostly positive trading day in Asia, after Chinese trade data generated some optimism that the country's economy is on an upward trend.

Monthly exports jumped 25% and imports climbed 29% from a year earlier, giving the country a trade surplus of $29.2 billion. All three figures beat market expectations.

The U.S. trade deficit sank 21% to $38.5 billion in December, marking the smallest trade gap since January 2010. The sharper-than-expected decline almost certainly means the U.S. economy actually grew in the fourth quarter instead of contracting 0.1% as previously estimated.

Among national European bourses, France's CAC 40 index rallied 1.4% to 3649.50, trimming the week's loss to 3.3%. Shares of BNP Paribas rose 2.4%, while shares of Soci�t� G�n�rale gained 2.9%.

PSA Peugeot-Citro�n shares had a roller-coaster ride between sharp gains and steep losses, ending up 2%, after a French minister said the government is considering taking a stake in the auto maker. Late Thursday, Peugeot said it would write down the value of its automotive and financial assets in Europe by �4.13 billion ($5.53 billion).

In the U.K., shares of banking heavyweight HSBC Holdings rose 2.3%. The FTSE 100 index gained 0.6% on the day to 6263.93, but lost 1.3% for the week.

In Germany, the DAX 30 index added 0.8% to 7,652.14, trimming its weekly loss to 2.3%. BMW rose 2.5%, after the car maker said it expects further sales growth, targeting an all-time high in 2013.