European stock exchanges surged ahead on healthy job creation figures in the US on Friday, with markets in both Paris and Frankfurt scoring substantial gains.
The London FTSE 100 index rose 0.43 percent to 5,036.3, while in Paris the CAC 40 jumped to its best level in two and a half years, advancing 0.74 percent to end the week at 4,091.58.
In Frankfurt the DAX shot up 1.15 percent to 4,423.52, its strongest closing since July 2002.
The DJ Euro STOXX 50 index of leading eurozone shares added 0.93 percent to finish at 3,106.86.
On the foreign exchange market the dollar fell sharply against the euro as traders determined that a report on US job creation in February -- while strong -- was unlikely to induce the Federal Reserve to raise interest rates more aggressively.
Ethan Harris, chief US economist at Lehman Brothers, said the solid US job-growth figures were solid enough to help the stock market but showed enough signs of softness to keep the bond market from panicking.
"Despite the strong employment number, there were no signs of wage pressures," Harris said, noting that it showed flat wages and no change in hours worked.
"From a bond market perspective, it's friendly because it reduces the pressure on the Fed [to raise rates]. From the stock market perspective, it's a great piece of news: low inflation, strong growth. You can't get a better combination," he said.
In Paris, analyst Marie-Pierre Ripert of Ixis Corporate and Investment Bank said the US figures "are clearly better than expected, suggesting acceleration in the pace of job creation."
But investors were also relieved that job growth was not so vigorous as to spark inflation worries and induce the Federal Reserve to raise interest rates.
In Paris luxury retailer LVMH gained 2.49 percent to 57.60 euros ahead of the company's full-year results next week.
Among technology stocks, Thomson added 2.69 percent to reach 21 euros, extending Thursday's sharp gains after the company's full-year results.
In London Lloyds TSB added 1.79 percent to finish at £4.97 after announcing taxable earnings for last year that beat expectations.
Logistics specialist Exel was the day's big winner, gaining 3.58 percent to close at £8.39, also on better than expected annual results.
Elsewhere share prices rose 1.27 percent to 9,538 on the IBEX-35 in Madrid, 0.22 percent to 3,090.98 on the BEL-20 in Brussels, 0.81 percent to 32,160 on the SP/MIB in Milan, 0.66 percent to 378.65 on the AEX in Amsterdam and 0.04 percent to 6,001.31 on the Swiss Market Index.
RSS