LONDON (The Deal) -- European stock indices rose on Friday, after a strong day of trading in Asia and as Scotland rejected independence from the rest of the U.K. in a long-awaited referendum.
The Scots voted about 55% to 45% to stay with the U.K. but the Scottish parliament will receive significant devolved powers from Westminster as a result of the referendum.
The FTSE 100 rallied 0.70% to 6,867.23 and the pound was up 0.08% at 1.6396 the dollar. In Frankfurt, the DAX surged 0.83% to 9,878.47 and in Paris the CAC 40 gained 0.50% to 4,487.23.
Royal Bank of Scotland(RBS) - Get Report was up more than 3% and Lloyds Banking Group(LYG) - Get Report gained over 1% as they continued a relief rally which had begun when polls started pointing to a decisive victory for the "No" campaign. The referendum result means they won't be moving their headquarters to England from Scotland. Lloyds spinout TSB Banking Group also gained. Other financial services sector gainers included Edinburgh insurer and fund manager Standard Life, which had also threatened to move to England.
GlaxoSmithKline(GSK) - Get Report edged higher after it agreed to pay a 3 billion renminbi ($488.6 million) fine after being found guilty of corruption in China. A Chinese court found on Friday that a local unit of the U.K. drugmaker had "offered money or property to non-government personnel in order to obtain improper commercial gains, and been found guilty of bribing non-government personnel," GlaxoSmithKline said.
In Frankfurt, SAP(SAP) - Get Report declined more than 2% after the software maker late Thursday said it would buy Redmond, Wash. software company Concur Technologies (CNQR) for an enterprise value of $8.3 billion.
In Paris, Vivendi edged higher after striking deal worth about $9 billion to sell its GVT broadband unit in Brazil to Spain's Telefonica, whose shares rose 1.6% in Madrid.
Also in Paris, oil producer Total(TOT) - Get Report edged up but was trading broadly unchanged by late morning on news that former subsidiary Arkema SA had made a 1.74 billion euros ($2.2 billion) offer for its Bostik adhesives business. Arkema, which makes chemicals for refrigerants and coating, declined almost 2%.
In China, news that Alibaba Group (BABA) - Get Report had raised $21.8 billion in its New York Stock Exchange initial public offering galvanized indices. The Chinese e-commerce company priced its shares at $68, at the top of an upwardly revised range.
In Hong, Kong Hang Seng gained 0.57% to 24,306.16. In Tokyo, the Nikkei 225 closed up 1.58% at 16,321,71.