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 posting a third straight week of gains.
The Stoxx Europe 600 index rose 0.8% to close at 295.55, marking
the highest level since June 2008.
The index rose 2.3% 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 traded 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 14% 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
2.4% as Nomura cut the chemicals firm to reduce from buy.
Banks were also among major movers. Shares of HSBC Holdings PLC
(HBC) rose 2.6% in London, BNP Paribas SA added 4.1% in Paris and
Banco Santander SA (SAN) gained 3.2% in Madrid.
Among country-specific indexes, the U.K.'s FTSE 100 index added
0.7% to 6,483.58, sending it 1.7% higher on the week.
Shares of Vodafone PLC (VOD) rose 3.2%. 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 3.1% after Goldman Sachs removed
the temporary-power provider from its European conviction buy
list.
France's CAC 40 index closed 1.2% higher at 3,840.15, closing
out the week with a 3.8% gain. See: FTSE 100 aims for five-year
high.
Shares of France Telecom SA gained 3.7% after Exane BNP Paribas
lifted the firm to outperform from neutral.
Outside the main index in France, shares of media group
Lagardere SCA rallied 4.8%, 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 0.6% to 7,986.47 and rose 3.6% on
a weekly basis. Shares of ThyssenKrupp AG jumped 6.4%, 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 5.6%, as Goldman Sachs added the
semiconductor firm to its conviction buy list.
Outside the major indexes, shares of Credit Suisse Group AG (CS)
climbed 3.9%, after UBS lifted the Swiss bank to buy from
neutral.
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