Europe shares saw strong gains on Friday, ending the day firmly in positive territory, as investors searched for bargains after heavy selling, and reassuring words from members of the U.S. Federal Reserve helped to boost sentiment.
Autos bounce back; Rolls Royce falls
The pan-European FTSEurofirst 300 Index closed higher by around 2.8 percent, with all major bourses bouncing back after a tough week of selling.
Tony Cross, a market analyst at Trustnet Direct, said that traders were attempting to hunt out some bargains after the the "shake-out" seen mid-week.
Kathleen Brooks, a research director at FOREX.com, said that market sentiment was back at the end of the week.
"Stocks in Europe are higher, oil prices are rising and even Greek bond yields are falling. Central bankers from the U.S. and U.K. have saved the day," she said in an afternoon note.
Meanwhile, at the bottom of benchmarks, Rolls Royce was the major mover, slipping to close down around 11.5 percent, after the U.K.-listed aircraft engine maker announced that it wouldn't return to profit growth until 2015.
US stocks surge
In the U.S., stocks surged at the start on Friday as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reported profits that topped expectations.
St. Louis Fed President James Bullard was credited with the bounce back in markets. He said on Thursday that the U.S. Federal Reserve should consider continuing to buy bonds beyond the scheduled end of quantitative easing later this month, due to market turmoil.
Also, the Commerce Department on Friday reported new-home construction climbed 6.3 percent in August, signaling improvement in the U.S. residential real-estate market.
In the U.K., the Bank of England's Chief Economist, Andrew Haldane, said the central bank may need to keep interest rates lower for longer to reduce the chances of an economic stagnation.
Jimmy Choo floats
Finnish telecoms company Elisa Communications rose to the top of benchmarks, climbing 4.8 percent, after announcing its third-quarter results. The company lifted its full-year profit outlook on Friday morning.
In corporate releases. Teliasonera traded 2.2 percent higher after the mobile network operator reported third-quarter earnings.
Shares of the shoemaker Jimmy Choo started trading in London on Friday. Its stock rose 2.8 percent to trade at 144 pence per share.
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