European stocks higher before US jobs data


(MENAFN- AFP) European stock markets rebounded on Friday as traders awaited key jobs data due out of the United States.Markets also assessed the economic outlook for the eurozone and Britain, a day after the European Central Bank (ECB) and Bank of England held their interest rates steady.The euro edged back up against the dollar and yen after a brief fall on Thursday fuelled by a warning from the head of the ECB that the eurozone economy remained fragile.London's benchmark FTSE 100 index climbed 0.87 percent to 6,749.55 points nearing the half-way stage on Friday.Frankfurt's DAX 30 grew 0.81 percent to 9,498.06 points and the CAC 40 in Paris gained 0.65 percent to 4,252.42 points in midday deals.European indices had closed down on Thursday, with investors unimpressed by the ECB's pledge to act if necessary to ward off deflation or a credit crunch, analysts said."Looking ahead to the US session ... it is all about this year's first non-farm payrolls figures and the US unemployment levels," said Alastair McCaig, market analyst at IG traders."As we round off the first full week of 2014, the outlook is just a touch clearer. We have now had the opportunity to digest the minutes of... (the) meeting at which the Fed finally pulled the trigger on tapering. "Meanwhile in Europe, yesterday's press conference from ECB president Mario Draghi was polished as ever. However, ultimately it left viewers with more questions than they had before he started talking."With the US Federal Reserve holding its next policy meeting at the end of the month, investors are closely monitoring Friday's jobs data to see if it will give the central bank more ammunition to further cut its stimulus.The Federal Open Market Committee's (FOMC) most recent meeting saw it reduce its bond-buying scheme by $10 billion a month to $75 billion from January, citing a pick-up in the world's number-one economy."The European indices are leading the way ... pushing higher ahead of the release of crucial jobs data out of the US," Joshua Mahony, research analyst at Alpari traders said on Friday."The backdrop of such a significant announcement is typically one of lowered volume and increased indecision in investment decisions."In foreign exchange trading, the European single currency eased to $1.3600 from $1.3606 late on Thursday in New York, when the euro rebounded from five-week lows.The euro climbed to 82.86 British pence from 82.54 pence Thursday. The British pound fell to $1.6413 from $1.6482.Gold increased to $1,233.25 an ounce from $1,226 Thursday on the London Bullion Market.Asian stock markets were mixed on Friday following a weak lead from Wall Street overnight.European stock markets had meanwhile surged in 2013 on growing investor optimism, supportive central bank monetary policy and easing eurozone crisis fears.London's benchmark FTSE 100 index of top companies leapt 14.43 percent last year, in the biggest annual increase since 2009, aided also by a recovering British economy.


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