(Reuters) – European stocks rose sharply on Friday, posting a fourth straight gain and reversing almost all of the losses from earlier in the week when fears of a U.S. recession sparked a global sell-off.
A 0.3% rise at 0708 GMT as the overnight US jobs report also helped ease investors' nerves about the state of the world's largest economy.
This four-session rally, which was last seen almost three months ago, reduced the weekly loss of the pan-European index to 0.02%.
Basic materials rose 1.4% on the day, in line with base metal prices as they rebounded on US data. [MET/L]
Suddenly, data showed that US jobless claims fell more than expected last week, suggesting that labor market fears are overblown.
That fear was fueled by a negative US nonfarm payrolls report, which triggered a global sell-off on Monday. However, since then, economic data and comments from US central bank officials have helped ease those concerns.
Among individual stocks, LEG Immobilien, one of Germany's largest listed real estate owners, jumped 5% after it posted a small loss for the second quarter.
The stock also helped lift the housing sector by 1.3%.
