European Indices gain on better jobs data

Joshua Raymond, Market Strategist, City Index commented: "European markets climbed on Friday after Non Farm Payrolls showed that the US lost less jobs than expected for February and the unemployment rate also fell to 9.7%, better than expected.

There had been a degree of apprehension as we approached the jobs data after recent spikes in weekly jobless claims. However, with the data beating expectations we saw investors looking to add risk to their equity positions and the buy US dollars, which strengthened against both the sterling and the euro.

The market was expecting a loss of 50,000 jobs and an unemployment rate of 9.8%. With data bettering both these predictions, investors have reacted positively and have looked to add to their positions triggering further gains for European Indices.

The FTSE 100 rallied another 25 points on the back of the jobs data and has moved closer to the 5600 high reached at the start of the year. Investors are likely to keep an eye out for the 5600 level to see how the market reacts and whether traders look to cash in their gains in and around this level.

It is the miners and the banks that have led the charge higher in Europe on high appetite for risk. Schroder's and Xstrata have been the standout gainers within these sectors with both stocks gaining over 4% and topping the gainers list in London."