Europe close: Stocks move higher on US data.

Equities on the Continent benefited from better than expected US retail sales data for the month of January, albeit alongside firmer price pressures.

Against that backdrop, by the close of trading the benchmark pan-European Stoxx 600 was higher by 0.34% to 371.47 and the Dax by 0.19% at 11,793.93 as the Cac-40 edged higher by 0.59% to 4,924.86.

Also noteworthy, in remarks to the House Financial Services Committee Fed chair Janet Yellen reiterated her stance that more interest rate increases will be appropriate, should the economy meet the central bank's outlook for gradually rising inflation and tighter labour markets.

Her statements were largely unchanged from those made during the previous session to US senators.

Commenting on those remarks, Jim Reid at Deutsche Bank said: "The possibility of a March move was left open but at the same time that wasn’t particularly surprising and in any case there was no great guidance on timing of the next hike."

On the other hand, Michael Hewson, chief analyst at CMC Markets UK, was of the following opinion: "The best performing sector has been banks and financials which are leading the gainers on the back of yesterday’s hawkish interpretation of Fed Chief Janet Yellen’s comments to the Senate Banking Committee on the timing of a potential Fed rate rise, as Royal Bank of Scotland, Barclays and Lloyds Banking Group hit their highest levels since the June Brexit vote."

While mostly "quite dull", the comments on rates did get traders excited, said analyst Craig Erlam at Oanda.

In economic news, consumer prices in Spain, the euro area´s fourth largest economy, retreated at a 1.0% month-on-month clip in January (consensus: 0.9%), which led to a dip in the year-on-year rate from 3.0% to 2.9%.

The euro area's trade surplus increased in December from €22.7bn to €24.5bn (consensus: €22.5bn).

Stateside, total US retail sales grew by 0.4% month-on-month in January (consensus: 0.1%). In parallel, consumer prices rose at a 0.6% month-on-month clip in January (consensus: 0.3%).

Banks powered ahead in early trading, with the Stoxx 600 gauge of lenders' shares tacking on 1.42% to 178.42.

Boosting shares in that sector, ABN Amro reported fourth quarter net income of €333m, beating analysts' forecasts.

Credit Agricole also delivered better than expected numbers, with a write-down of its French retail arm failing to dent the bank's bottom line by as much as feared.

In other news, Danone served up a new €1.0bn cost-cutting plan.