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Europe shares bounce back to close higher; FTSE MIB up 1.5%

European shares closed higher on Friday, bouncing back after Thursday's sell-off, after they were buoyed by better-than-expected nonfarm payrolls data from the U.S.

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US jobs ahead

European stocks closed up after nonfarm payrolls data showed that the U.S. economy had added 248,000 jobs in September, beating expectations. The Bureau of Labor Statistics also reported that the unemployment rate fell to 5.9 percent as the labor force participation rate fell to 62.7 percent, its lowest level since February 1978. Taken together, though, the numbers renewed hopes that employment growth is on a sustainable track higher.

Read MoreUS created 248,000 jobs in Sept

The FTSE Eurofirst 300 provisionally closed 0.9 percent higher at 1,347.01 points. All major European bourses closed higher, except the German DAX, which was closed on Friday for a national holiday.

Banking stocks surged after a bad day on Thursday, led higher by Bank of Ireland and Ubi Banca. The energy sector also posted gains following some fluctuation in Brent crude futures.

In the U.S., stocks traded sharply higher , with the Dow industrials jumping 175 points, after the payrolls report bolstered a positive view of the U.S. economy.

Draghi disappoints

Back in Europe, business activity in the euro zone fell to a 10-month low in September as the downturn in two of the region's biggest economies - France and Italy - continued, according to data published Friday. Markit's composite Purchasing Managers' Index (PMI), which combines activity in the manufacturing and services sector, fell to 52.0 from 52.5 in August.

Read MoreEuro zone business activity hits 10-month low

This came after investors had been disappointed on Thursday when the European Central Bank (ECB) failed to reveal the full size of its asset-purchase program. Plus, ECB President Mario Draghi made no suggestion of a possible Federal-Reserve-style quantitative easing (QE) program.

Read MoreECB reveals asset purchase plan, skimps on detail

easyJet soars

In individual stocks news, shares of easyJet closed up 6.4 percent, having surged to the top of the FTSE 100 Index after the airline lifted its profit forecast on Friday. It said that Air France strikes, cheaper oil costs and favorable exchange rates had helped its operations.

Amec shares also closed up as the engineering group said its underlying revenue growth in 2014 was expected to be "modest".

Shares of BP had also gained after the company asked a U.S. court Thursday to reconsider the ruling which found the oil major "grossly negligent" for its 2010 oil spill in the Gulf of Mexico.

Read MoreBP asks judge to reconsider gross negligence ruling

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