European stock markets sprinted ahead on Friday on sharply better than expected US employment data that revived hopes of a US recovery accompanied by a decline in joblessness.
The London FTSE 100 index gained 0.18 percent to close at 5322.36 while in Paris the Cac 40 rose 1.25 percent to 3846.62. The Frankfurt Dax added 0.82 percent to finish at 5817.65.
Elsewhere there were gains of 1.37 percent in Milan, 0.89 percent on the Swiss Market Index, 1.11 percent in Amsterdam and 1.07 percent in Madrid.
Bond prices in Europe fell hard as the good news from the United States encouraged investors to favor equities. The 10-year German Bund was carrying a yield of 3.230 percent after 3.166 percent on Thursday while the French OAT was yielding 3.475 Percent from 3.439 percent. Bond prices and yields move in opposite directions.
US stocks rallied on official data showing an unexpected improvement in the troubled labor market, key to building a sustainable recovery from the worst recession in decades.
Job losses narrowed to 11 000, down from a revised 111 000 in October, and the unemployment rate dipped to 10.0 percent from 10.2 percent, Labor Department reports showed.
The readings beat average analyst forecasts of 125 000 jobs lost and a jobless rate unchanged.
The Dow Jones Industrial Average initially shot higher but later ran out of steam and was down 0.05 percent at 10 361.31 as the dollar strengthened. A stronger dollar threatens to penalise US exports.
The tech-heavy Nasdaq had gained 0.34 percent to reach 2180.55.
Analysts cautioned that the improved but mixed labor picture could be a blip as unemployment continues to rise.
"This report, despite its unevenness, will likely create some real euphoria in the investor community. It is the first time we can start thinking that the job situation may be turning around with some gusto," said Joel Naroff of Naroff Economic Advisors.
Heidi Shierholz of the Economic Policy Institute said the report showed "finally some healing" but warned that "unemployment ... is expected to continue on an upward trend until we start adding jobs in a healthy way, which will likely not happen until next spring or summer."
The market also had more good economic news to chew on, with US factory orders rising 0.6 percent in October, topping expectations of a flat reading.
In Europe stocks soared shortly after publication of the US job report before stabilising ahead of the close.
On the London Stock Exchange British Airways jumped 2.81 percent after Citigroup raised its recommendation on the share to "buy" from "hold."
Among the day's losers was Standard Chartered Bank, which gave up 3.63 percent.
In Paris auto maker Peugeot rose 1.07 percent, recovering from sharp fall Thursday when the market reacted hesitantly to Peugeot's plans to forge an alliance with Mitsubishi.
On the Frankfurt Dax Volkswagen shares fell 0.16 percent a day after shareholders gave their backing to a capital increase to help it acquire sports car maker Porsche.
Asian markets ended mixed on Friday as investors took profits after recent gains.
Tokyo closed up 0.45 percent with investor confidence buoyed by the government's recent efforts to bolster the economy, as a weaker yen gave some comfort to exporters hit by the unit's recent strength against the dollar.
However, Hong Kong ended 0.25 percent lower and Sydney was down 1.52 percent as profit-taking set in after four days of gains.
Gulf stock markets had closed their trading week slightly higher on Thursday, with the initial shock waves from the Dubai debt crisis that caused heavy losses appearing to have subsided.
