European shares start March on a positive note

World equity markets rose on Friday to end an otherwise slow week on optimism around trade and benign U.S. inflation, while crude oil retreated on news of weaker U.S. factory activity.

European stocks traded higher on Friday, beginning the first trading day of March on a positive note.

The pan-European Stoxx 600 finished provisionally up 0.35 percent with almost every sector in positive territory. Autos were the top performing sector, with Faurecia leading the gains, up more than 5 percent. The French auto equipment firm said that it’s to buy Clarion and launch a Japan-based business group in April.

Trade uncertainty between China and the U.S. continued to weigh on market sentiment. National Economic Council Director Larry Kudlow told CNBC Thursday that trade discussions between the two nations had been going well, with “fantastic” progress being made in the last week. This comes after U.S. Trade Representative Robert Lighthizer showed skepticism and highlighted outstanding issues with negotiations in a testimony earlier this week.

In Europe, investors continue to await further news surrounding the U.K.’s impending departure from the European Union. Market watchers question whether the U.K. will exit the EU at the end of March, with or without a deal, or go for an alternative, such as a “People’s Vote” or briefly delaying the departure date.

In economic news, euro zone inflation numbers showed an increase in February. Consumer inflation hit 1.5 percent last month, from a previous 1.4 percent reading in January. Nonetheless, core inflation, excluding food and energy, only stood at 1.2 percent, still short of the European Central Bank’s target of close to but below 2 percent.

U.S. stocks rose on Friday, with the Dow Jones Industrial Average gaining 0.2 percent as shares of Nike and Boeing initially outperformed.

Oil prices reversed course to fall 2 percent as bearish U.S. manufacturing data stoked concerns over global energy demand. U.S. West Texas Intermediate futures fell 2.48 percent, to $55.80 a barrel. Global benchmark Brent crude futures fell 1.87 percent drop.