European markets shot up after a soft start to the week as US payroll figures came in lower than expected, reversing fears of an interest rate rise in the US.
Frankfurt rose 118.12 to 4,840.81 on the Xetra Dax index to end a stressful week with little net change overall. Siemens continued to push higher and the shares advanced €2.70 to €59.35 on further speculation that Siemens is poised to expand into US data networking.
MAN gained €71 cents to €24.70 on rumours that the German group was set to link up with RVI, the truck arm of French motor giant Renault.
Banks were firm too. Deutsche Bank added €1.32 to €48.15 and Dresdner €1.11 to €32.41. Among insurers, Munich Re gained €5.10 at €187.
Paris rocketed on the US payroll data, surging through the 4,200 mark on the CAC-40, before easing in the afternoon as investors took profits. The blue-chip index closed 101.5 or 2.5 per cent higher at 4,189.56, a 2.3 per cent rise on the week.
Peugeot rose steadily following upbeat comments from brokers expecting the stock to outperform after its recent weakness. Shares rose €7.80 to €128.80.
Bank stocks were subdued after Thursday's strong rise. But Societe Generale stood out, posting a €8.40 gain to €147.70.
Amsterdam ended 13.62 higher at 529.54 on the AEX index after a strong run for market heavyweights Royal Dutch, Unilever and Philips.[Q L]
Royal Dutch, up €1.50 at €42.85 for a two-day gain of 8.8 per cent, continued to benefit from the better showing by international oil prices. ABN Amro added 30 cents at €18.20 after snapping up a big minority stake in Banca di Roma. Elsevier rose 50 cents to €14.70 ahead of next Thursday's results statement.
Milan closed at its highs for the day, boosted by strong demand for financials, and the real-time Mibtel index finished 696 or 2.9 per cent ahead at 24,619.
Insurers rocketed following a government decision to increase the taxfree threshold for pension fund investors. A number of the stocks faced temporary suspensions because of excessive gains.
Alleanza, €1.42 higher at €10.95 and Mediolanum, 82 cents ahead at €6.31, led the charge. Generali put on €1.44 to €37 and Ina closed 16 cents higher at €2.44.
Madrid tracked the rest of Europe, with the general index 13.41 or 1.5 per cent higher to 890.26. But traders said gains were capped by a modest Endesa, up 27 cents to €23.98.
Banks delivered strong performances, with BCH up 25 cents to €10.99 and Santander 42 cents to €18.45 after they outlined the objectives of their merger at a meeting of directors.
