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EUROPE: European stocks go up as investors snap up bargains

European stocks rose on Friday as investors snapped up some bargains and maintained a positive take on the prospects for markets next year.

The UK's FTSE 100 Index added 0.5 percent to 6,397.0, while France's CAC-40 Index advanced 0.3 percent to 5,605.36. Germany's DAX Index jumped 0.3 percent to 7,948.36.

"Overall, in an environment of elevated risks, we continue to be constructive on European equity markets and expect another year of positive returns in 2008," said equity strategists at Citigroup in London.

A day earlier, European shares had slumped the most since Nov. 21 on worries that a unified plan by global central banks to aid financial markets won't be enough to pull growth out of a hole.

Media shares paced the advance after the UK's United Business Media said last month was the most profitable trading month in the past five years and that its second-half trading performance is in line with market expectations. Its shares rose 1.7 percent.

WPP Group gained 1 percent, while Reed Elsevier added 3.6 percent. France's Publicis jumped 0.5 percent.

Oil stocks gained as the price of crude remained high and the International Energy Agency raised its forecast for oil product demand next year.

Royal Dutch Shell shares advanced 1.5 percent in London, while France's Total jumped 0.7 percent. In Spain, Repsol traded 0.6 percent higher.

Pharmaceutical stocks were in focus after GlaxoSmithKline said its breast cancer drug Tyverb has been recommended for conditional approval in the EU. Its shares rose 0.5 percent.

Meanwhile, shares of Belgium-based pharmaceuticals company UCB gained 3.1 percent after it said it has filed key drug Cimzia with the US regulator for a second treatment use, and confirmed its full-year financial targets.

On the downside, mining stocks fell as the prices of copper and gold dropped and Goldman Sachs lowered its view on the metals and mining sector to neutral from attractive.

It cited a weaker period of global economic growth next year.

In London, Lonmin tumbled 2.4 percent while BHP Billiton shed 1.6 percent.
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