The European markets rose for the first time in three days on Friday after a report showed that the U.S. economy grew at the fastest pace in six years and concern eased that Greece will default on its debt.
The U.S. Commerce Department said in its report that the country's gross domestic product increased at an annual rate of 5.7% in the fourth quarter compared to the 2.2% growth seen in the third quarter. Economists had been expecting GDP to increase by about 4.7% for the quarter. With the significant acceleration in the pace of growth, GDP growth for the quarter marked the biggest increase since the third quarter of 2003.
The Reuters/University of Michigan consumer sentiment index for January was revised up to 74.4 compared to the preliminary estimate of 72.8 and December's final reading of 72.5. Economists had been expecting a much more modest upward revision to a reading of 73.0.
Crude for March delivery fell $0.27 to $73.37 a barrel on the New York Mercantile Exchange, by the time time the European markets closed.
The FTSEurofirst 300 index of pan-European blue chips closed 1.01% higher at 1,011.89 points, while the narrower DJ Stoxx 50 index rose 0.99% to $2,478.51 points.
Around Europe, the U.K.'s FTSE 100 index rose 0.83% to 5,188.52, while France's AC 40 index climbed 1.37% to 3,739.46 and Germany's DAX index surged up 1.24% to 5,608.79.
Economy sensitive banking stocks gained after the U.S. GDP report was released. HSBC, Europe's largest bank, climbed 2.6%, while BNP Paribas, France's largest bank, surged up 2.1% and Deutsche Bank, Germany's biggest bank, rose 1.4%.
National Bank of Greece, the country's biggest, climbed 5% and Alpha Bank, the third biggest, rallied 8.8%, as concern eased that the country will default on its debt.
BMW, the world's biggest maker of luxury cars, surged up 4.8% after the company said it is looking forward to profitable growth in 2010.
Infineon, Europe's second biggest chipmaker, rose 3% after the company reported a profit for the first quarter compared with a loss last year, and raised its revenue growth guidance for the full year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.