European stocks recorded their best month in more than six years on Friday, buoyed by gains at carmaker Renault and planemaker Airbus while investors also banked on more monetary stimulus for the region. The pan-European FTSEurofirst 300 index closed flat but nevertheless rose around 8 percent over the course of the month for its best monthly performance since July 2009. The euro zone's Euro STOXX 50 index rose 0.1 percent, while Germany's DAX gained 0.5 percent.
Some investors saw signs that the European Central Bank (ECB) would undertake more measures to spur business and trade in Europe as a reason to keep buying European equities.
"There are a lot of bargains out there and I expect the market to stabilise and gradually improve as we approach the end of the year," said Massimo Baggiani, head of international equities at asset manager Symphonia.
Renault climbed 5.3 percent after third-quarter revenue increased 9.4 percent, while Airbus rose 4.4 percent after it reported better-than-expected results.
Cosmetics group L'Oreal fell 4.6 percent after its third-quarter figures missed market forecasts, while Spanish bank BBVA declined 3.5 percent after it reported a loss that was worse than feared.
According to data from Thomson Reuters StarMine, 52 percent of companies in the European STOXX 600 index have beaten or met expectations with their results so far this quarter, although earnings have fallen from a year ago.
The Athens market also underperformed with a 2 percent drop.
Shares in major Greek banks slumped after banking sources told Reuters that a health check on them by the European Central Bank (ECB) would reveal a total capital shortfall of up to 14 billion euros ($15.5 billion).
Berkeley Futures' associate director Richard Griffiths was sceptical as to whether or not European stock markets would make much more progress by the end of 2015, pointing to weak economic growth in Europe as a negative factor.
"We've had the best month in ages, but I'm still bearish," he said.
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