By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- European stocks rose Friday, gaining ground after consumers expressed more confidence in the euro-zone economy.

The Stoxx Europe 600 index rose 0.7% to 333.81, held higher by drug makers, miners and banks. Shares of Intesa Sanpaolo SpA were bumped up by 5.1%, as the Italian bank proposed a cash-dividend level for 2013 that was on par with the one in 2012. The company reported a net loss for the fourth quarter in part because of write-downs for bad loans.

The Stoxx Europe 600 reached an intraday high after the European Commission's report that its economic sentiment indicator rose by 1.2 points to 102.4 in March from February, bolstered by increased confidence among consumers in the services and retail sectors. The result surpassed expectations of 101.4, according to FactSet data.

The five-largest euro-area economies saw an increase in sentiment, said the European Commission.

The improvement in economic sentiment "suggests that the Ukraine crisis has -- so far at least -- not had a widespread dampening impact on sentiment although it was evident from the Ifo survey that German companies have significant concerns," said Howard Archer, chief U.K. and European economist at IHS Global Insight.

Before the release of the euro-area sentiment report, data from polling firm GfK showed consumer confidence among Britons hit a six-year high in March.

The U.K.'s FTSE 100 was up 0.4% at 6,614.20, with energy issues up after oil futures (CLK4) extended their rise above the $101-a-barrel level. BP PLC (BP) tacked on 1% and Royal Dutch Shell PLC (RDSA) rose 0.3%. But the benchmark index was off higher levels after the Office for National Statistics said gross domestic product in the U.K. in 2013 expanded by 1.7%, lower than a previous estimate of 1.8%. The growth rate of 0.7% for the fourth quarter was unrevised.

Meanwhile, Germany's DAX 30 jumped 1% to 9,546.90, powered up by auto makers as Daimler AG gained 2.1% and Volkswagen AG picked up 2%.

France's CAC 40 rose 0.5% to 4,401.71, though shares of food producer Danone SA lost 0.5% following a Barclays ratings cut to underweight. Danone's pricing power has "waned" while global dairy prices have surged in recent months, and the company's margins will once again have to absorb the impact, said Barclays as part of its ratings assessment.

"With persistently negative-earnings momentum, we believe Danone deserves to trade at a low-single digit discount to peers," said Barclays analysts in a report.

The major European equity indexes were in line for weekly gains, with the DAX 30 facing a 2.2% rise, and the Stoxx Europe 600 up 1.8%.

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