By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved mostly
higher on Friday, after data confirmed that the German and U.K.
economies are on track for a sustainable recovery and
consumer-confidence figures for the euro zone beat
expectations.
The Stoxx Europe 600 index gained 0.3% to 304.49, after posting
the biggest one-day gain in three weeks on Thursday. The index,
however, spent most of the week mired in the red, setting it on
track for a 0.6% weekly loss.
Among the biggest advancers in the index, shares FLSmidth AS
(FLIDY) rallied 10% after the engineering group said it would cut
1,100 jobs after reporting a drop in second-quarter operating
profit.
Shares of Croda International PLC climbed 5% after Deutsche Bank
lifted its view on the chemicals firm to buy from hold.
In the same vein, ING Groep NV added 2.7% after Morgan Stanley
lifted its recommendation on the stock to overweight from equal
weight.
More broadly, investors cheered recent upbeat data from the euro
zone. Consumer confidence in the region improved to -15.6 in August
from -17.4 in July, beating expectations of a -16.7 reading,
according to FactSet estimates.
In Germany, data on Friday showed the country's economy expanded
by 0.7% in the second quarter, confirming official estimates
released last week.
And in the U.K., data showed the economy grew faster than first
estimated in the second quarter. The Office for National Statistics
said GDP expanded by 0.7%, better than the first estimate of 0.6%
growth.
On Thursday, the region's composite purchasing managers' index
rose to a 26-month high in August.
Member of the European Central Bank's governing council Ewald
Nowotny said late Thursday that there will be no need for another
rate cut after the recent stream of upbeat data from the euro area,
according to Bloomberg.
The U.K.'s FTSE 100 index rose 0.7% to 6,495.47, helped higher
by mining firms.
Germany's DAX 30 index added 0.2% to 8,414.89, while France's
CAC 40 index picked up 0.2% to 4,068.75.
Investors also continued to speculate when the U.S. Federal
Reserve will taper its $85-billion-a-month asset purchases. Fears
that the central bank could begin scaling back its easing program
as soon as September hit the markets earlier in the week, with the
10-year U.S. Treasury note (10_YEAR) climbing to its highest level
since July 2011.
Atlanta Fed Bank President Dennis Lockhart said on Friday he
would back a September taper of the central bank's asset purchase
plan as long as data between now and the meeting show the economy
on a steady growth path.
U.S. stocks traded mixed on Wall Street.
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