U.S. stocks rally on China data; auto stocks stumble

European stocks and commodities rallied after better-than-expected economic data in China fueled hopes stimulus measures are paying off. The euro headed for a record run of weekly declines.

Europe's Stoxx 600 added 0.9 per cent, following Asian peers higher, after Chinese industrial production and retail sales statistics beat estimates. Brent crude climbed above US$94 per barrel. 

Bets that the European Central Bank's tightening cycle is over sent the euro toward its ninth straight week of losses, the longest run since it was created over two decades ago. Attention now turns to the Federal Reserve's meeting next week after strong data Thursday revived speculation policy makers can engineer a soft landing and keep rates on hold.  

“It looks like 'happy hour' for the market,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “To confirm the bull case, high cash piles must find their way into markets, and next week the Fed could send signals to initiate such action.”