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European Markets End Higher On Trade Deal Hopes, U.S. Jobs Data

European markets ended on a fairly buoyant note on Friday as continued optimism about U.S.-China trade deal and strong monthly U.S. jobs data lifted sentiment and triggered hectic buying in stocks from across various sectors.

U.S. President Donald Trump's comments that trade talks with China were "moving right along", and that the two sides are "having very major discussions" raised expectations that a phase one trade deal will be signed sometime soon.

The pan European Stoxx 600 ended up 1.16%. The U.K.'s FTSE 100 climbed 1.43%, France's CAC 40 advanced 1.21% and Germany's DAX gained 0.86%, while Switzerland's SMI ended up 0.97%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Iceland, Ireland, Italy, Netherlands, Norway, Portugal, Russia, Spain and Sweden ended with sharp to moderate gains.

Greece and Poland closed weak, while Turkey and Ukraine ended flat.

In the U.K. market, DS Smith surged up 5.2%. Marks & Spencer gained more than 4% and Antofagasta advanced 3.5%. WPP, Kingfisher, Micro Focus, Mondi, Legal & General, BHP Group, Burberry Group, Anglo American Foods, Morrison Supermarkets, Tesco, Bunzi and Rio Tinto ended stronger by 2 to 3%.

Phoenix Group Holdings shares ended modestly higher after the company agreed to buy Swiss Re AG's U.K. insurance unit ReAssure Group Plc. Swiss Re shares ended more than 3% up in the Swiss market.

In France, ArcelorMittal, Dassault Systemes, Carrefour, STMicroElectronics, L'Oreal, Michelin and Schneider Electric gained 2 to 3.5%. Publicis Groupe, BNP Paribas and Louis Vuitton also ended sharply higher.

In the German market, Infineon gained about 4%. RWE gained 2%, Linde PLC advanced 1.6% and Lufthansa gained about 1.5%. Allianz, BMW, Deutsche Post and Vonovia also ended notably higher.

In economic news, The UK labor market conditions remained challenging in November amid election and Brexit uncertainty, the Report on Jobs from IHS Markit showed.

Germany's industrial production declined unexpectedly by 1.7% on a monthly basis in October, data from Destatis revealed. That was much bigger than the revised 0.6% fall logged in September. Economists had forecast output to recover 0.1%.

On a yearly basis, industrial output declined sharply by 5.3% after easing 4.5% in September. Production was expected to decline 3.6% in October.

Italy's leading indicator continued to signal subdued economic activity in months ahead, the statistical office Istat said in its monthly report. Risks remain tilted to the downside, the agency added.

Meanwhile, France's trade deficit widened in October to its lowest level in five months, figures from the French Customs Office showed.

The trade deficit narrowed to EUR 4.730 billion from EUR 5.418 billion in the the previous month. Economists had forecast a deficit of EUR 4.800 billion. The shortfall was the smallest since May, when the deficit was EUR 3.744 billion.

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