European Stocks Mixed Amid Fed Rate Hike Chatter

(RTTNews) - European stocks failed to rally Friday despite some promising economic news from the euro zone, leaving the major averages lower for the week.

Markets remained cautious ahead of next week's Scottish referendum on independence from the U.K.

Job creation in Eurozone continued to increase in the second quarter, data from Eurostat showed. Employment rose 0.2 percent from the prior quarter, when it was up by 0.1 percent. Year-on-year, employment grew 0.4 percent, faster than the 0.1 percent rise in the first quarter.

Separate data showed that Eurozone industrial production recovered at a stronger than expected pace in July. Industrial output grew 1 percent month-on-month in July, reversing the 0.3 percent fall in June.

The news from Europe has been overshadowed by renewed expectations that the U.S. is going to hike interest rates sooner than forecast.

Bank of America Merrill Lynch is now forecasting the first rate increase to occur in June 2015, three months ahead of its earlier projection.

U.S. retail sales increased in line with economist estimates in the month of August. Retail sales were up 0.6 percent according to Commerce Department data released today.

The Euro Stoxx 50 index of eurozone bluechip stocks eased 0.12 percent, for a weekly loss of 1.26 percent.

The German DAX slipped 0.44 percent, the French CAC 40 was down 0.03 percent, but the FTSE 100 index of the U.K inched up 0.12 percent.

In London, Barclays added 2 percent after announcing John McFarlake as new chairman.

J D Wetherspoon rose 1.4 percent after saying full year pre-tax profit rose.

Software company Aveva plunged 20 percent after issuing a profit warning.

Novo Nordisk said the U.S. FDA voted to approve Saxenda, a once-daily obesity drug. The stock climbed 3.2 percent in Copenhagen.