European shares rise before US jobs data

LONDON (AFP) – Europe's main stock markets rose on Friday as the market saluted a return to profits for state-rescued Royal Bank of Scotland and before publication of key US jobs data.

London's FTSE 100 index of top shares rose 0.44 percent to 5,389.01 points in late morning trade. Frankfurt's DAX 30 was up 0.20 percent to 6,346.50 points and in Paris the CAC 40 index added 0.23 percent to 3,773.05 approaching the half-way mark.

The Stoxx 50 index of top eurozone shares advanced by 0.22 percent in value to stand at 2,825.60 points.

"European Indices traded higher ... but trading was relatively quiet ahead of the all important US nonfarm payroll data," said City Index analyst Joshua Raymond.

"With recent noises emanating out of the US indicating that the Fed may be looking at further monetary easing options to help maintain the US economic recovery, today's jobs data could provide further clues as to whether further easing is warranted or not."

Ahead of the data, the US government said on Thursday that new claims for American jobless benefits rose unexpectedly last week to the highest level since April -- sending US stocks markets lower.

Initial claims climbed 4.1 percent to 479,000 in the week to July 31, the Labor Department said, baffling most analysts who had expected claims to fall to 455,000.

Also ahead of Friday's figures, attention fell on the banking sector as Royal Bank of Scotland scraped into profit, sending its share price up by two percent to 53 pence.

RBS said it made a net profit of nine million pounds (11 million euros, 14 million dollars) in the six months to the end of June compared with a loss after tax of 1.042 billion pounds in the first half of 2009.

"The smattering of gains (for share prices on the FTSE) this morning comes in the form of banking and insurance stocks, with RBS being one of the highlights," said Simon Denham, head of trading firm Capital Spreads.

"They've managed to come out with a profit for the first half, when most were expecting a small loss so their share price is testing a 3-month high."

Japanese share prices closed mixed as several players took to the sidelines ahead of the US jobs data and next week's Bank of Japan policy meeting, analysts said.

Source : Yahoo News