LONDON (The Deal) -- European stocks rallied on Wednesday following better-than-expected Chinese trade data and as oil prices pulled back from their worrying descent to $30 a barrel.
After dipping below the psychologically important threshold Tuesday, West Texas and Brent crude contracts both rose more than 2.8%, taking them comfortably over $31 a barrel.
In China, trade data for December showed rising exports and a smaller-than-forecast decline in imports. The data didn't help Chinese markets but other Asian indices surged in its wake.
In Europe, stocks remained up despite disappointing industrial output for the eurozone in November, when the month-on-month decline in production was a worse-than-expected 0.7%.
In London, the FTSE 100 was up 1.25% to 6,003.09 by late morning. In Frankfurt, the DAX climbed 1.33% to 10,118.50. The CAC 40 in Paris rose 1.74% to 4,455.13.
Mining stocks including Rio Tinto (RIO) , Glencore (GLNCY) and Anglo American (AAUKF) rose in London, Tesco (TESO) extended Tuesday's 6.7% gain, rising well over 3% and Tullow Oil (TUWOY) posted double-digit share price gains after reporting progress on capital expenditure cuts and noting that clever hedging allowed it to protect revenue.
After Tuesday's preemptive 3.3% rise, food retailer J Sainsbury (JSAIY) slipped more than 2% in London on confirmation of sales figures over the Christmas period that were better than previously expected.
It also laid out its rationale for wanting to bid for general merchandise retailer Home Retail Group, which has puzzled some analysts and investors given the struggles of the food retailing industry.
Another retailer, Sports Direct International (SDISY) , was up more than 3% on news it had built 11.5% and 2.3% stakes, respectively, in Iconix Brand Group (ICON - Get Report) and Dick's Sporting Goods (DKS - Get Report) , in order "to hopefully build a relationship and develop commercial partnerships with the relevant parties."
Shares in news distributor and aviation services company John Menzies rose almost 4% as the company said 2015 sales met expectations, announced the resignation of its CEO and offered the prospect of a potential breakup, saying its board will "continue to review its strategic and organisational options to enhance shareholder value."
A Christmas trading update sent clothing retailer Ted Baker almost 6% higher, while shoe retailer Shoe Zone was up almost 11% after announcing it will use some of its cash for a 6.5 pence special dividend, on top of a final dividend. A full-year results bulletin showed both sales and profit slipped at Shoe Zone, though gross margins edged higher.
In the Netherlands, Dutch artificial turf and protective materials maker Royal Ten Cate was up more than 7% at €25.42 after a financial buyout consortium raised their offer to €26 from €24.60 after a lackluster take-up of a previously recommended offer.
In Frankfurt, Volkswagen (VLKAY) was up 1.7% even after California rejected its car recall plan to rectify emissions-test cheating, a stance endorsed by the Environmental Protection Agency.
Asian stocks rose for the most in three weeks on the China data, though Chinese indices themselves slumped.
The Shanghai Composite index fell 2.42% to 2,949.60 and the Shenzhen Component dropped 3.06% to 9,978.82. In Tokyo, the Nikkei 225 surged 2.88% at 17,715.63 and the Topix gained 2.86% to 1,442.09.
Sumitomo Corp. closed up 3.1%. The company tore up its fiscal 2016 forecast after taking a hefty writedown on a nickel project after prices of the mineral collapsed.
In Hong Kong, the Hang Seng closed up 1.13% to 19,934.88.