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EUROPE: Shares show solid gains in Europe on positive signs in US

"European stocks are looking at the indications coming out of the US."

Stephen Pope, chief global market strategist at Cantor Fitzgerald

European stocks posted solid gains on Friday, boosted by signs that the US job market is holding up well despite the difficulties surrounding the economy.

The UK's FTSE 100 Index gained 1.1 percent to 6,554.9, while France's CAC-40 Index gained 0.8 percent to 5,718.2. Germany's DAX Index rose 0.7 percent to 7,994.1.

"European stocks are looking at the indications coming out of the US," said Stephen Pope, chief global market strategist at Cantor Fitzgerald.

Basic resource stocks rose on the back of higher metals prices and the possibility of more consolidation in the sector.

Speculation of a possible Anglo American/Xstrata combination resurfaced, sending Xstrata shares up 7.9 percent and Anglo American 5.1 percent higher. Norske Skog shares jumped 15 percent, Antofagasta climbed 5.2 percent and Sweden's Boliden rose 3.7 percent.

Credit Suisse shares rose 1.9 percent, Anglo Irish Bank gained 2.3 percent, National Bank of Greece climbed 2.4 percent and Barclays shares rose 2.4 percent.

UK builder Berkeley Group rose 9.5 percent after it said it was making a US$491 million cash return a year ahead of schedule.

It also said the housing market will benefit from Thursday's rate cut by the Bank of England, which brought interest rates down a quarter point to 5.5 percent. A positive outlook for the entire sector sent Taylor Wimpey shares 7.6 percent higher, Persimmon 5.8 percent and Bellway shares up 3.0 percent.

Munich Re rose 5.2 percent, following news that Swedish fund Cevian Capital, had bought a stake of nearly 3 percent.

Drugmaker AstraZeneca edged up 0.1 percent after it announced it is raising its research and development targets.
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