Equity prices swelled higher on upbeat Chinese data results and earnings by US banks, with London’s benchmark index headed back towards its record-high level.
The death of Thailand’s king, meanwhile, sparked bargain-buying in the country after Bangkok stocks suffered sell-offs in his final days.
Data showing that China’s producer price index rose last month after 54 consecutive months of falling provided some much-needed hope for the Chinese economy a day after market-sapping trade figures.
Consumer prices also rose more than expected, further boosting sentiment.
Meanwhile, a trio of leading US banks beat analyst forecasts for third quarter earnings despite the tough low interest rate environment.
The three — Wells Fargo, JPMorgan Chase and Citigroup — all saw net profits fall as low rates pared lending margins, but they beat forecasts from analysts.
“Better than expected US bank earnings and higher than expected Chinese inflation data helped lift spirits in stock markets on Friday,” said market analyst Jasper Lawler at CMC Markets.
The gains for the banking stocks quickly slid away, but the Dow was still up 0.4% in late morning trading.
European equities held onto their gains, with London closing with a gain of 0.5% at 7,013.55 points, while Paris rose 1.5% at 1.5% at 4,470.92  points and Frankfurt was 1.6% up at 10,580.38 points at close.
London’s FTSE 100 index this week hit an intra-day high of 7,129.83 points, fuelled by a plunging pound in the wake of Britain’s vote earlier this year in favour of quitting the European Union.
The situation could soon change however, if only in the US, as the Federal Reserve prepares to possibly hike interest rates before the end of the year.
US retail sales data released yesterday coming in as expected with a 0.6 monthly gain in September after a summer in which consumers had shown a slackening appetite to spend kept alive the possibility of a December rate hike.
While British equities climbed on Friday, so too did the rate of return demanded by investors to hold 10-year British government bonds, hitting a post-Brexit high of 1.15%, on concerns about inflation due to the falling value of the pound.
The Thai king’s death this week saw a recovery in the country’s stocks yesterday, but analysts warned uncertainty over the nation’s future without its uniting figure posed fresh risks for an economy already battered by a decade of political turmoil.
Thai stocks plunged around 6% this week and the baht lost around 3% as investors grew uneasy about political and economic stability following the death of the monarch who reigned for seven decades.