European markets close flat following euro zone, China data

The pan-European Stoxx 600 was in positive territory at the closing bell, chemicals stocks leading the gains with a 1.2% climb while autos recovered from an early fall to trade 0.8% higher. Health care was the worst performing sector, shedding 1.3%.

An official report Friday revealed that China’s exports fell less than expected in June, with dollar-denominated exports falling 1.3% from the same period a year ago. Economists polled by Reuters had expected a 2% decline on the back of the ongoing trade war with the U.S.

Euro zone industrial production rose more than expected in May, data showed on Friday, offsetting declines over the past two months and defying gloomy forecasts caused by prolonged trade tensions. EU statistics agency Eurostat said euro zone factory output grew by 0.9% in May on the month, exceeding modest market expectations of a 0.2% rise.

Daimler stock was down 0.6% by the end of the session, after the German carmaker warned investors to expect a second-quarter loss before interest and taxes of 1.6 billion euros ($1.8 billion) after a 2.6 billion euro profit posted in the same period last year.

Meanwhile, Deutsche Bank shares received a welcome reprieve, rising 2.5% after UBS became the first broker to upgrade the German lender’s stock following a mass restructuring effort.

Investors are also processing mixed messages from the U.S. Federal Reserve after Chairman Jerome Powell kept the focus Thursday on global risks which could trigger a rate cut this month, while colleagues from regional Fed districts painted a rosier picture of continued U.S. growth and a solid business outlook.