By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- A strong jump in U.S. nonfarm payrolls
helped send European stock markets higher on Friday, with the
benchmark index on track for a third straight week of gains.
The Stoxx Europe 600 index rose 0.7% to 295.22, after trading as
low as 293.53 earlier in the session.
The index was poised for a 2.2% rise on the week, the biggest
weekly gain since the beginning of 2013, helped by solid gains in
the U.S. where the Dow Jones Industrial Average (DJI) posted
all-time highs. Over the past year the Stoxx 600 has nudged a 12%
advance as cheap liquidity from central banks and a pick up in the
global economy have lured investors back into equities.
On Friday, shares of Lagardere SCA jumped the most since June
last year after a well-received earnings report, while ThyssenKrupp
AG gained the most in 2013 on news the chairman will step down.
Infineon Technologies AG rose to a five-week high after a broker
upgrade.
The broader stock markets opened in positive territory, but were
sent firmly higher after U.S. jobs data beat expectations. The
Labor Department said 236,000 jobs were added to the economy in
February, exceeding estimates of a 160,000 rise.
Additionally, the unemployment rate dropped to 7.7% from 7.9%,
marking the lowest level since December 2008. See: U.S. economy
gains 236,000 jobs in February
U.S. stocks opened higher on Wall Street. See: U.S. stocks rise
as jobs picture brightens
"In our view, the pace of employment growth is what will
determine when the Fed ends it [quantitative-easing] program and
the significant market reaction to the report does not reflect
this," Allan von Mehren, chief analyst at Danske Bank, said in a
note.
"The Fed has stated that it will continue to buy assets until
the labor market 'improves substantially.' It is likely to take
several months of employment growth of at least 200k per month
before the Fed reduces its asset purchases. Although we are
optimistic on the U.S. economy, especially over the medium term, we
expect the Fed to continue its asset purchases at the current pace
until Q4 this year," he said.
European investors also found inspiration in Asia, where bourses
rose as upbeat export data from China lifted the mood. Exports in
February were 21.8% higher than they were a year earlier,
suggesting that the global economy is recovering as demand for
Chinese goods rebounds. See: China trade surplus narrows, but
exports rising
Additionally, Japan revised its growth figures for the final
quarter of 2012 to show that the economy has turned around and is
expanding. See: Japan GDP grows again, but current account weak
Movers
Back in Europe, shares of Fugro NV jumped 13% in Amsterdam as
the oil- and gas-services firm proposed raising dividends for 2012,
as revenue and earnings improved for the full year. See: Fugro net
profit up 1.4%, price pressure continues
Pointing in the other direction, shares of Clariant AG dropped
2.3% as Nomura cut the chemicals firm to reduce from buy.
Banks were also among major movers. Shares of HSBC Holdings PLC
(HBC) rose 2.2% in London, BNP Paribas SA added 3.9% in Paris and
Banco Santander SA (SAN) gained 2.5% in Madrid.
Among country-specific indexes, the U.K.'s FTSE 100 index added
0.5% to 6,472.79, with shares of Vodafone PLC (VOD) adding 2.7%.
The wireless telecom firm secured a 10-year deal with the New
Zealand police to deliver customized mobile services and
smartphones. See: Vodafone gets 10-year pact from New Zealand
police
Shares of Aggreko PLC slumped 3.2% after Goldman Sachs removed
the temporary-power provider from its European conviction buy
list.
France's CAC 40 index traded 1% higher at 3,830.48. See: FTSE
100 aims for five-year high.
Shares of France Telecom SA gained 3.6% after Exane BNP Paribas
lifted the firm to outperform from neutral.
Outside the main index in France, shares of media group
Lagardere SCA rallied 4.7%, as the firm said it swung to profit in
2012. Additionally, the company said it expects to sell its stake
in Airbus owner European Aeronautic Defence & Space Co. by the
end of July. See: Lagardère 2012 net profit rises to 89mln euros
and See: Lagardère: sale of EADS stake seen by end of July
Germany's DAX 30 index gained 0.5% to 7,874.91. Shares of
ThyssenKrupp AG jumped 6.1%, as the steelmaker said its supervisory
board chairman, Gerhard Cromme, will step down from his post on
March 31. See: ThyssenKrupp Chairman Gerhard Cromme to step
down
Shares of Siemens AG (SI) gained 1.3%, after Citigroup added the
German conglomerate to its focus list with a buy rating. Citi cited
progress in its restructuring and the potential for increased
profitability and cash returns.
Infineon Technologies AG jumped 5.8%, as Goldman Sachs added the
semiconductor firm to its conviction buy list.
Outside the major indexes, shares of Credit Suisse Group AG (CS)
climbed 3.8%, after UBS lifted the Swiss bank to buy from
neutral.
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