European stocks rise on Chinese trade data

The boost came after Chinese trade figures beat expectations, reinforcing hopes that global demand is holding up better than feared and lifting shares tied to industrial activity and exports. That helped offset some of the drag from hotter-than-expected U.S. September inflation at 3.7%, which kept Treasury yields elevated and limited appetite for riskier assets.

Italy stood out on the downside. The FTSE MIB fell 0.61% to 49,753.84, making it the only major European index to finish in the red, even as other markets managed to recover from a cautious start.

Sector moves showed the mix of optimism and caution. ASML rose 1.2% after the Dutch chip equipment maker said AI demand remains strong and lifted its outlook, while Renk gained 2.7% after a 130 million-euro order from KNDS. Infineon slipped 1.7% as selling pressure hit parts of the semiconductor space.

Macro forces are still steering the tape. Brent crude briefly jumped 1.4% to $107.15 a barrel after missiles struck two ships in the Strait of Hormuz, underscoring how geopolitical risk is feeding into energy prices and inflation expectations. The euro fell 0.66% to 1.112 against the dollar as markets priced in a firmer Federal Reserve stance following the U.S. inflation reading.

For investors, the message is that Europe can still rally on signs of Chinese resilience, but that gains remain fragile when U.S. rates, energy costs and geopolitical shocks all move higher at once. The next test is whether upcoming U.S. bank earnings and further inflation data reinforce the case for tighter financial conditions.