Investing.com - European stocks soared sharply higher into the close Friday, as market sentiment strengthened after European Central Bank President Mario Draghi reiterated that the bank was ready to start purchasing troubled bonds.
At the close of European trade, the EURO STOXX 50 climbed 1.74%, France’s CAC 40 advanced 1.56%, while Germany’s DAX 30 added 1.24%.
Speaking at the ECB's post-policy meeting press conference, Draghi said the central bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place and reiterated that the ECB was acting strictly within its mandate in undertaking a bond buying program via OMTs.
The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.
Earlier in the day, euro zone officials announced that if a request from the Spanish government for a sovereign bailout were to come it would not be imminent.
Sparking the rally, the rate of unemployment in the U.S. last month fell unexpectedly, official data showed on Friday.
In a report, the U.S. Department of Labor said the unemployment rate fell to a seasonally adjusted 7.8%, from 8.1% in the preceding month .
Analysts had expected the U.S. unemployment rate to rise to 8.2% last month.
In addition, U.S. non-farm payrolls rose more-than-expected last month, official data showed on Friday.
In a report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 114K, from 142K in the preceding month whose figure was revised up from 96K.
Analysts had expected U.S. non-farm payrolls to rise 113K last month.
Financial stocks were broadly higher, led by French lenders BNP Paribas and Societe Generale, up 1.45% and 1.35%, while Germany's Deutsche Bank and Commerzbank advanced 0.11% and 0.56% respectively.
Peripheral lenders added to gains, with shares in Spain's BBVA and Banco Santander climbing 0.60% and 1.07%, while Italian banks Intesa Sanpaolo and Unicredit rose 0.24% and 0.59%.
Automakers were also on the upside, as German constructors BMW and Volkswagen jumped 1.10% and 1.24%, while Italian group Fiat climbed 0.51%.
In London, commodity-heavy FTSE 100 added 0.73%, supported by gains in mining and oil stocks.
Mining giants Rio Tinto and BHP Billiton advanced 1.68% and 0.47%, while copper producer Kazakhmys rallied 2.19%.
Oil and gas giant Anglo American was also higher, with shares jumping 1.47%, while rival BP added 0.71%.
Elsewhere, financial stocks were mixed. Shares in HSBC Holdings rose 0.42% and Barclays climbed 0.62%, while the Royal Bank of Scotland and Lloys Banking retreated 0.13% and 0.87% respectively.
At the open, the Dow Jones added 0.50%, the broad based S&P 500 advanced 0.72% and the tech heavy Nasdaq climbed 0.44%.