Europe cheers U.S. jobs data

LONDON, England (CNN) -- European markets roared to a close on Friday, bolstered by an early rally on Wall Street following positive U.S. unemployment numbers.

The U.S. data showed the jobless rate fell to a five-month low of 5.7 percent in August from 5.9 percent a month earlier. Last month's number was better than most economist had expected. (Full story)

European markets also receive an initial boost from a positive outlook by Intel, the U.S. chipmaking giant, which drove technology stocks higher.

The telecom sector was lifted by Nokia's release of new mobile phone models and the completion of a successful of $3.3 billion issue of new shares by Ericsson aimed at improving its finances.

London's FTSE 100 rose 2.4 percent to 4,107.2 and the CAC 40 blue chip index in Paris gained 3.4 percent to 3,246.67, while Frankfurt's electronically traded Xetra Dax was up 3.1 percent to 3,457.60 in late trading (the German market was set to close at 1800 GMT)..

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The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 3.1 percent, with the information technology, insurance and media sub-sectors leading gains.

Nokia, the world's largest maker of mobile phones, rose 7.7 percent to 14.22 euros after its launched several new mobile phone models -- including one with a colour screen, a built-in camera and camcorder -- that could help lift the sluggish handset market. (Full story)

Ericsson, the loss-making Swedish telecom equipment maker, jumped 9.8 percent to 6.75 euros after raising much-needed money to cut its debt. But Ericsson could be forced to raise more cash after rating agencies cut its debt to junk status as its debt-laden customers continue to slash orders. (Full story)

Deutsche Telekom (FDTE) was up 9.5 percent to 10.57 euros in late trading after Reuters reported that the dominant German phone group was in initial talks about the possible merger of its Voicestream unit to another U.S. operator.

France Telecom (PFTE) rose 10 percent to 11.20 euros ahead of a board meeting next Thursday, at which time a decision on the fate of Chief Executive Michel Bon could be made -- along with what to do with the group's German mobile phone company MobilCom.

The media sector was led higher by cash-strapped Vivendi Universal (PEX). It gained soared 14.9 percent to 13.20 euros after Reuters said the world's second biggest media company is mulling the sale of most of its publishing business in a deal that could raise some $4 billion to $5 billion. (Full story)

Chip maker stocks rose are after Intel, the world's biggest semiconductor maker, said on Thursday that third-quarter sales would not fall short of forecast.

"At the end of the day, it could have been a lot worse,'' Dan Niles, an analyst at Lehman Brothers, told Reuters.

Infineon Technologies (FIFX), Europe's second-largest chip maker, was up 4.5 percent to 9.80 euros in late Frankfurt trading and Philips Electronics, the number three, gained 5.8 percent to 18.19 euros. ASML, the Dutch semiconductor equipment maker, rose 6 percent to 9.21 euros.

Helping to lifting the insurance sector was Zurich Financial Services, Europe's third-largest insurer. Its shares jumped 12.5 percent to 146.50 Swiss francs after saying on Thursday that it would axe 4,500 jobs to restore profitability. The company also posted its biggest loss ever but said it would institute measures to raise $5 billion to bolster its balance sheet.

French insurer Axa (PCS) was up 5.4 percent to 13.69 euros, adding to gains following Monday's statement that it was on track to reach its target for cost savings. The UK's Royal & Sun Alliance (RSA) jumped 8.3 percent to 133.23 pence.

Carmaker DaimlerChrysler (FDCX) was up 3.3 percent to 41.78 euros after Japanese media report that it would expand its influence in Japan's Mitsubishi Motors group by taking a stake in the truck and bus unit scheduled to be hived off next year. (Full story)

The AEX index in Amsterdam gained 3.3 percent and the SMI in Zurich added 2.9 percent, while Milan's MIB30 index was up 2.6 percent.