European stocks rise on strong E.Z. data; Dax up 0.67%

Investing.com - European stocks were higher on Friday, boosted by better-than-expected manufacturing data from the euro zone, while investors eyed a highly anticipated U.S. employment report later in the day.

During European morning trade, the EURO STOXX 50 rose 0.35%, France’s CAC 40 jumped 0.89%, while Germany’s DAX 30 advanced 0.67%.

Markit research group said that Spain's manufacturing purchasing managers' index rose to 46.1 in January from a reading of 44.6 the previous month, beating expectations for an improvement to 45.5.

Italy's PMI manufacturing rose to 47.80 last month from 46.70 in December, above expectations for an increase to 47.60.

In addition, Markit said that the euro zone's manufacturing PMI ticked up to 47.9 in January from 47.5, beating expectations for the index to remain unchanged.

Meanwhile, investors were looking ahead to U.S. data on nonfarm payrolls data later Friday, after Wednesday’s ADP nonfarm payroll report showed that the U.S. private sector added 192,000 jobs in January, above expectations for an increase of 165,000.

Financial stocks were broadly higher, as shares in French lenders BNP Paribas and Societe Generale jumped 1.43% and 1.38%, while Germany's Deutsche Bank and Commerzbank climbed 0.86% and 1.24% respectively.

Bloomberg reported earlier that France’s third largest bank, Credit Agricole, up 1.57%, was set to book EUR2.68 billion of goodwill writedowns in the fourth quarter to reflect stricter rules and a worsening economy.

Auto stocks also trended higher, led by German groups Daimler and Volkswagen, up 0.65% and 1.38% respectively.

In London, commodtiy-heavy FTSE 100 climbed 0.56%, boosted by gains in oil and mining stocks, while data showed that manufacturing activity in the U.K. fell more-than-expected in January.

Oil and gas major Anglo American was on the upside, with shares rallying 1.48%, while rival company BP advanced 0.48% and Tullow Oil surged 2.15%.

Meanwhile, mining giants Rio Tinto and BHP Billiton climbed 1.94% and 0.94%, while copper producers Xstrata and Kazakhmys jumped 0.89% and 1.51% respectively.

Elsewhere, financial stocks were mixed. Shares in Barclays inched up 0.01% and HSBC Holdings eased up 0.04%, while Lloyds Banking rose 0.60%. The Royal Bank of Scotland fell 0.20% on the other hand.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.48% increase, S&P 500 futures signaled a 0.38% rise, while the Nasdaq 100 futures indicated a 0.42% gain.

Later in the day, the U.S. was to release the closely watched government report on nonfarm payrolls and the unemployment rate, while the Institute of Supply Management was to publish a report on manufacturing activity.

In addition, the University of Michigan was to produce revised data on consumer sentiment.