LONDON: European stock markets rose after poor German and French economic data fueled speculation that the European Central Bank would be forced to roll out stimulus measures.

In afternoon trading, Frankfurt’s DAX 30 index added 0.41 percent to 9,236.38 points, while in Paris the CAC 40 gained 0.28 percent to 4,207.85.

London’s benchmark FTSE 100 index rose 0.48 percent to stand at 6,688.46 points ahead of British growth data due on Friday.

In light of figures that showed the German and French economies grinding to a halt “we still believe that the ECB needs to implement further policy action — probably in the form of full-scale quantitative easing — to try to bring the euro down and re-ignite the recovery,” said Capital Economics’ chief European economist Jonathan Loynes

The German economy, which is also Europe’s biggest, stalled in the second quarter (Q2), hit by weak exports and falling investment, casting a cloud over recovery in the crisis-battered euro zone region.

Germany’s gross domestic product shrank by 0.2 percent in the period from April to June, following growth of 0.7 percent in the preceding three months.

Collapsing growth in the main eurozone economies pushed funds into the safety of German debt bonds on Thursday, causing the German borrowing rate to fall below 1.0 percent for the first time ever.

When trading began in New York, US stocks also posted gains, with the Dow Jones Industrial Average up by 0.14 percent to 16,674.61.

The broad-based S&P 500 gained 0.20 percent at 1,950.52, while the tech-rich Nasdaq Composite Index rose 0.16 percent to 4,441.11.

US markets were also encouraged by the latest jobless claims data, which pointed to an improving labor market.