By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Most European stock markets held on to
gains on Friday, after some mixed U.S. jobs data, while Spanish
stocks slumped after a short-selling ban was lifted.
The Stoxx Europe 600 index added 0.5% to 288.68, recouping from
a 0.5% loss on Thursday.
Shares of BT Group PLC jumped 7%, after the U.K. telecom
operator posted better-than-expected third-quarter earnings and
said its full-year financial outlook remains unchanged.
Shares of Swedbank AB advanced 1.6%, as Deutsche Bank lifted the
bank to buy from hold.
On a more downbeat note, shares of home-appliances firm
Electrolux AB slumped 6.7%. The company said the market situation
in Europe is likely to get worse, but that it will be offset by
growth in North America and emerging markets.
The broader European stock markets stayed in positive territory
after data from the U.S. showed 157,000 more jobs were added to the
economy in January, while the unemployment rate rose to 7.9% from
7.8%. Economists surveyed by MarketWatch expected an increase of
170,000 jobs last month, with unemployment dipping to 7.7%.
Additionally, gains for December and November were revised
sharply higher, with December revised to 196,000 from 155,000 and
November's figure revised up to 247,000.
U.S. stock-index futures pointed to a higher open on Wall
Street.
"For every step the U.S. economy takes forward, it seems to take
one step back. Like other developed economies around the world, it
just can't seem to maintain momentum," said Marcus Bullus, trading
director at MB Capital, in emailed comments.
"In January, we've had weak GDP, weaker than expected jobs
growth and the best start to the year for the S&P since 1997.
There's neither rhyme nor reason in the market at present," he
added.
"The bulls will argue that this minor reality shot could
actually be what's needed to allow investors on the sidelines the
dip they need to get in and set us up for a more positive
year."
China and Europe PMI
Back in Europe, mining firms showed positive moves, after some
mixed readings on Chinese manufacturing data. HSBC's final print of
the manufacturing Purchasing Managers' Index for January came in at
52.3, up from the survey's initial reading of 51.9, while the
official PMI reading showed business activity remained in expansion
territory, although at a slower pace than in December.
Shares of Rio Tinto PLC (RIO) put on 2.1%, while BHP Billiton
PLC (BHP) rose 1.7%.
The FTSE 100 index traded 0.7% higher at 6,319.45.
Data from the euro zone showed the manufacturing sector
continued to shrink in January, but at the slowest pace in 11
months. Markit's final PMI rose to 47.9 from 46.1 in December,
coming in above an earlier estimate of 47.5.
Separately, a report showed euro-zone unemployment held steady
at 11.7% in December. The unemployment rate for November was
revised to 11.7% from 11.8%.
Spanish stocks on the decline
Spanish stocks were under heavy selling pressure, after
authorities on Thursday lifted a ban on short selling. The
short-selling ban was introduced last year during high volatility
and pressure on the country's equities and sovereign bonds.
The IBEX 35 index lost 1.9% to 8,202.40, with shares of Banco
Santander SA (SAN) down 3.2%.
Among other country-specific indexes in Europe, Germany's DAX 30
index rose 0.4% to 7,805.83. Shares of Infineon Technologies AG
rose 2.1%, after J.P. Morgan Cazenove lifted its 2013 earnings
estimates 5.8%, saying industrial orders have finally bottomed and
will improve.
Peer form STMicroelectronics NV jumped 4% in Paris, also helped
higher by a 8.2% 2013 estimate change from J.P. Morgan
Cazenove.
Shares of Credit Agricole SA was also higher in France, up 2.2%,
shaking off news that the bank's fourth-quarter earnings will be
bit by goodwill impairment charges of 2.68 billion euros ($3.64
billion).
Among other French banks, BNP Paribas SA rose 1.1% and Société
Générale SA gained 1%.
Shares of LVMH Moët Hennessy Louis Vuitton picked up 0.7%, after
the luxury-goods firm late Thursday said it is confident for 2013
as full-year profit for 2012 jumped 12%.
France's CAC 40 index rallied 1.1% to 3,771.68.
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