UK Stocks Lead European Rally, US Faces Volatility

PAN PYLAS

LONDON (AP) — European stock markets closed higher Friday as hopes of a recovery in the U.S. economy were buoyed by a run of upbeat economic data, though volatility was expected to complicate trading in the final hours on Wall Street as a number of financial contracts expire.

In Europe, the FTSE 100 index of leading British shares closed up 65.07 points, or 1.5 percent, at 4,345.94 while Germany's DAX advanced only 1.98 points to 4,839.46. France's CAC-40 index was 27.21 points, or 0.9 percent, higher at 3,221.27.

The FTSE outperformed its peers largely because mining stocks, a major part of the index, rebounded strongly amid higher energy and commodity prices, while insurers, such as Aviva PLC, were buoyed by a recommendation from analysts at Deutsche Bank. A strong trading update from cruise liner Carnival PLC helped it close 6.6 percent higher.

"For today, on the FTSE, the negatives on the board are definitely in the minority," said Anthony Grech, market strategist at IG Index.

The gains on the FTSE were not enough to help it post a positive outcome for the week. The FTSE shed 2 percent. The CAC ended 3 percent lower where it started the week while DAX closed down 4 percent.