Europe Trades Higher on Mixed Data

NEW YORK (TheStreet) -- Mixed macroeconomic data hit the valuation of European shares in Friday trading, but shares in Europe were trading higher.

During the early part of the session the Flash PMI report showed that the service and manufacturing sides of the eurozone economy expanded during the prior month after a prolonged period of contraction.

But a report later in the day showed the U.K economy continued to contract into the third quarter, even though the market expected a positive read. The actual read came in at down 0.4% compared with an expected rise of 0.2%. The report had a strong influence on the financial markets, shedding some of the optimism seen previously.

S&P 500 futures had a range of only 4 points during the overnight session, as the market failed to break either way. However, equity futures started to look bearish after the U.K. GDP report, as some market participants are pricing in a slower recovery.

Most sectors advanced in Friday trade, the only exception being the health care companies. The gains were spread evenly among the automobile and parts, banks, basic resources and chemicals sectors, with each of these sectors advancing about 1%. The automobile & parts sector advanced following the better-than-expected earnings reports from Kia and Hyundai.

The European calendar Friday was loaded with important reports, something that has been reflected in the market reaction to the releases. The market's focus point was the U.K. GDP report, which showed that the economy contracted for the sixth consecutive quarter, the most since records begun.

Ahead, investors prepare for a speech from Federal Reserve Chairman Ben Bernanke in Boston and existing home sales at 10 a.m. EDT.

Crude oil for November delivery was recently trading at $81.15 a barrel, lower by 10 cents.