Summary The energy group says that fourth-quarter profits are lower than recent levels of profitability.
LONDON (AFP) - Europe s main stock markets rose on Friday, with London making gains as strong retail sales data offset a profit warning from Anglo-Dutch energy giant Shell.
London s FTSE 100 index of top companies gained 0.25 percent to stand at 6,832.75 points in midday deals, Frankfurt s DAX 30 index advanced 0.67 percent to 9,782.52 points and in Paris the CAC 40 added 0.31 percent to 4,332.48.
The gains came despite a subdued performance in Asia and overnight losses on Wall Street.
The euro slipped back.
British shoppers kept the tills ringing over Christmas, sending retail sales surging in a fresh sign of economic recovery, official data showed on Friday.
Retail sales jumped 5.3 percent in December compared with the same month of 2012. That was the fastest growth since October 2004.
"The extent of which retail sales rose in December is certainly a positive surprise which should bode well for the first quarter and possibly for 2014 as a whole," said trader Markus Huber at broker Peregrine & Black.
FTSE 100 heavyweight Royal Dutch Shell meanwhile issued a severe profits warning blaming exploration costs, pressures across the oil industry, and disruption to Nigerian output.
The energy group said that fourth-quarter profits were set to be "significantly lower than recent levels of profitability".
Huber added: "While the warning from Shell seems to be confined to this individual company, retail sales seem to point to a marked improvement in consumer sentiment which if it persists will affect the economy as a whole in a positive way in the months ahead.
"The extent of the warning was so severe and surprising at the same time that many almost prefer a wait-and-see attitude here to see how things develop ... before making any major long term investment decisions."
Shell s B share price was down 2.23 percent at 2,254.5 pence, but clawed back some of its earlier heavy losses.
In Paris, leading world oil services group Schlumberger reported a 22.0-percent rise in 2013 net profit to $6.73 billion (5.0 billion euros) and its shares gained 1.23 percent to 65.79 euros. It said it expected demand for oil to be strong this year.
Shares in leading eye-lense maker Essilor fell by 2.78 percent to 79.03 euros after the firm reported that sales in 2013 had fallen short of targets.
In foreign exchange activity on Friday, the European single currency eased to $1.3603 from $1.3619 late on Thursday in New York.
The British pound meanwhile won a boost from the bright retail sales numbers. The euro fell to 82.75 pence from 83.27 pence on Thursday, while the pound rose to 1.6439 from $1.6353.
Gold prices drifted down to $1,241 an ounce from $1,241.50 Thursday on the London Bullion Market.
Asian equities diverged Friday, after a negative lead from Wall Street following disappointing corporate results and soft economic data.
Sydney and Tokyo stocks ended flat, and Shanghai lost 0.93 percent, while Hong Kong won 0.64 percent in value.
