LONDON: Europe's main stock markets pushed solidly higher on Friday as jobs data showed the recovery in the US economy has gotten over a winter cold.
London's FTSE 100 rose 0.70 percent to 6,695.55 points. In Paris, the CAC 40 climbed 0.79 percent to 4,484.55 points, and the DAX 30 in Frankfurt gained 0.70 percent to 9,695.77 points.
Madrid finished up 0.88 percent and Milan added 0.83 percent. Investors had been keenly awaiting March non-farm payrolls data to see if the US economic recovery will get back on track after a severe winter cold-snap dented activity.
Labor Department data showed private employers boosted hiring to 192,000 jobs in March, just a shade below analysts' average estimate of 195,000 net new jobs.
"The equity markets got exactly what they wished for healthy rather than hyperbolic job growth, and the likelihood that the taper pace will stay put," said Marcus Bullus, trading director at MB Capital.
Moreover, revisions showed stronger gains in the first quarter, despite severe winter weather.
"Payrolls are now thought to have risen by an average of 178,000 so far this year, which is hardly anything to worry about," said economist Rob Wood at Berenberg Bank in London.
"With government spending cuts and tax increases easing markedly, US growth should remain strong and jobs gains solid," he added.
However the US jobless rate remained unchanged from February at 6.7 percent as the number of unemployed held steady at 10.5 million.
Data cements market perceptions:
Analysts agreed that positive jobs data means the US Federal Reserve will likely continue cutting each month the amount of monetary stimulus it injects into the economy.
"Overall, the employment data won't change any perceptions that the economy is growing at a decent but sluggish pace," Briefing.com said.
"More importantly, the data also won't change any perceptions as to how the Fed might act."
Markets now expect the Fed to begin raising its ultra-low interest rates in the middle of next year.
Wall Street nevertheless fell, with the Dow Jones Industrial Average sliding 0.47 percent to stand at 16,494.94 points in afternoon trading.
The broad-based S&P 500 shed 0.88 percent to 1,872.98, while the Nasdaq Composite Index tumbled 2.24 percent to 4,142.98 as sell-off gripped the tech sector amid a recurring concern that hot technology stocks like Facebook and Netflix are overvalued.
"It's all been momentum," said Michael James, managing director of equity trading at Wedbush Securities.
"As the stocks go lower and continue to go lower, portfolio managers have to react. They may not want to be selling stocks, but they can't allow this to keep going."
Asian markets were mixed with mild profit-taking following a healthy week of gains, with the focus now on the release of US jobs data later in the day.
Hong Kong stocks fell 0.24 percent, Seoul shed 0.28 percent and Tokyo eased 0.05 percent, while Sydney won 0.24 percent and Shanghai added 0.74 percent.
With few catalysts to drive trade, many investors in Asia took the opportunity to cash in gains after a broad global rally this week that has been fuelled by upbeat data including on manufacturing and US private-sector jobs.
The euro meanwhile slid to $1.3704 from $1.3717 late on Thursday in New York. The dollar stood at 103.33 yen from 103.94 on on Thursday.
The European single currency drifted down to 82.60 British pence from 82.65 pence, while the pound dropped to $1.6591 from $1.6597.
On the London Bullion Market, the price of gold advanced to $1,297.25 an ounce from $1,284 on Thursday.
And the rate of return to investors on Italian government bonds hit all-time low, and Spanish bonds hit a nine-year low after the publication of US jobs data.
The yield on Italian government 10-year bonds hit 3.148 percent on the secondary market, while those for Spain touched 3.135 percent.
Meanwhile, shares in Holcim and Lafarge shot up on news the Swiss and French companies are holding merger talks that would create the world's biggest cement maker.
Shares in Holcim soared 6.9 percent to 80.20 francs, while the SMI index fell 0.21 percent. Lafarge's shares jumped 8.9 percent to 64.09 euros.
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