European shares recover

European shares recovered on Friday after weak U.S. and Chinese economic data earlier sent global equity markets into a dive.

After opening lower, Europe’s STOXX 600 nudged up 0.2 percent despite weakness in German equities. Demand for safe-haven currencies remained strong. Stocks fell after a U.S. report that retail sales had dropped in December to their lowest since 2009 and by data on Chinese producer prices, which were little changed for a seventh straight month in January. Germany’s main stock index, which is exposed to the Chinese economy because of its large number of exporters, was down 0.2 percent by 0932 GMT. It had fallen as much as 0.5 percent.

European car stocks, a bellwether for the continent’s economy, fell 1 percent as sales dropped and the deadline approached for a U.S. Commerce Department that could lead to the imposition of tariffs.

The slow start in European shares reflected nerves across global equity markets. MSCI’s world equity index, which tracks shares in 47 countries, was flat.

Investors in Asia took fright early after the U.S. retail sales report. Asia-Pacific shares outside Japan fell 1.1 percent as market in Seoul, Tokyo and Shanghai all lost ground. Worries about the United States, which many considered a bright spot in the world economy, offset some optimism over trade talks in Beijing between the United States and China. The two top U.S. negotiators were due to meet Chinese President Xi Jinping on Friday, but no decision has been taken to extend a March 1 deadline for a deal.

Commodities diverged from wider market trends. Crude oil briefly reached 2019 highs above $65 per barrel after OPEC-led supply cuts and a bigger-thanexpected cut by Saudi Arabia this week encouraged investors. The global Brent benchmark last traded at $64.75, up 18 cents, or 0.28 percent, from the last close. It has risen 4.5 percent this week.