Investing.com - European stocks closed higher Friday despite disappointing manufacturing data from Italy and Spain, as strong U.S. payroll data lifted shares.
At the close of European trade, the EURO STOXX 50 gained 0.43%, France’s CAC 40 climbed 0.40%, while Germany’s DAX 30 gained 0.35%.
Sparking the risk on equity trade, U.S. non-farm payrolls rose more-than-expected last month, official data showed on Friday.
In a report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 171K, from 148K in the preceding month whose figure was revised up from 114K.
Analysts had expected U.S. non-farm payrolls to rise 125K last month.
Markit research group said that Spain's manufacturing purchasing managers' index fell more-than-expected in October, ticking down to 43.5 from a reading 0f 44.6 the previous month.
Analysts had expected the manufacturing PMI to fall to 44.0 in October.
Separately, Italy's manufacturing PMI fell to 45.50 last month, from 45.70 in September, disappointing expectations for a reading of 45.90.
Meanwhile, investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Financial stocks were broadly lower, as shares in French lenders BNP Paribas and Societe Generale declined 0.26% and 0.80%, while Germany's Deutsche Bank tumbled 1%.
Peripheral lenders added to losses, with Italian banks Unicredit and Intesa Sanpaolo retreating 0.40% and 1.02%, while Spain's BBVA and Banco Santander declined 0.67% and 0.40% respectively.
Meanwhile, Alcatel-Lucent plunged 6.55% after saying that third-quarter net loss was EUR146 million, beating the average analyst estimate calling for a loss of EUR149.1 million. Sales declined 2.8% to EUR3.6 billion.
In London, FTSE 100 eased higher by 0.03%.
Financial stocks were mixed, as shares in HSBC Holdings dropped 0.35% and Barclays declined 0.44%, while the Royal Bank of Scotland tumbled 1.22%. Lloyds Banking overperformed on the other hand, with shares adding 0.20%.
The RBS said earlier that third-quarter net loss was GBP1.38 billion after setting aside GBP400 million more to compensate clients wrongly sold loan insurance. Analysts had forecast a loss of GBP276 million pounds.
Mining giants BHP Billiton and Rio Tinto were also on the upside, as shares advanced 0.51% and 0.69%, while copper producers Xstrata and Kazakhmys rose 0.22% and 0.48%.
In the U.S., equity markets reversed course, trading lower midsession with the Dow Jones down 0.32%, the S&P 500 off 0.08% and the Nasdaq lower by 0.34%.