European stocks looked set to close out the week in the green on Friday after new data from China showed that the country’s factories recovered faster than expected in April.
Chinese industrial production rose 3.9% compared with the same month in 2019, ahead of analyst forecasts of just 1.5%.
Stocks in Asia broadly climbed on Friday, even as stocks in China were weighed down by the prospect of a spike in unemployment in the country and a fragile recovery in the services sector.
The data from China paints “a story of a supply-led recovery under pressure from the government, while demand remains anemic and a low unemployment rate,” said Sebastian Galy, a senior macro strategist at Nordea Asset Management.
“As that demand filters through and inventories are used, they are met by rising inventories from factories that depress prices. If we had to make a guess, unemployment in the sense of the non-employed is likely around 12% and that is a significant issue,” he said.
Futures were also pointing to a higher open for US stocks on Friday.