Markets pulled ahead in afternoon trade after Wall Street opened higher in the wake of the day's mixed US employment data. The FTSE Eurobloc 100 index closed 6.63 or 0.6 per cent up at 1,056.75. The FTSE Eurotop 100 climbed 22.64 or 0.8 per cent to 3,006.91 while the broader FTSE Eurotop 300 settled 9.96 or 0.8 per cent higher at 1,305.58.

Frankfurt's Xetra Dax index climbed 83.79 or 1.7 per cent to 5,124.13, largely in response to a good day for the chemicals sector. Bayer rose €1.50 to €39.39 as Goldman Sachs upgraded the stock, citing management indications about increased flexibility on potential strategic moves in pharmaceuticals. Bayer has said it planned to expand its health business, possibly through acquisitions.

BASF put on €1.48 to €39.30, extending the week's bounce after its pull-back since mid-April. The stock was also boosted by Thursday's news that Brussels had cleared BASF's sale of a majority stake in its plastic interest to Solvay, the Belgian chemicals group.

Hoechst edged 10 cents higher to €42.10, calling a halt to losses earlier in the week that followed news of its plans to sell 45 per cent of Swiss speciality chemicals group Clariant.

Paris ended slightly off in edgy trading dominated by the release of key US employment data. The CAC-40 index, down 1.4 per cent at one stage, closed 10.27 or 0.2 per cent lower at 4,344.25.

A handful of stocks outperformed the market sharply. Lagardere, the French defence and publishing group, rose €1.55 or 4.2 per cent to €38.70, lifted by the successful flotation of Aerospatiale Matra, the defence company in which it owns a minority stake.

Amsterdam ended little changed as Hoogovens, the metals producer that is in merger talks with British Steel, rallied strongly after early profit-taking. The AEX index finished 2.50 or 0.4 per cent higher at 566.53.

Hoogovens dipped 1.7 per cent but recovered to end €1.90 or 4.4 per cent up at €45.00. It said it would hold a news conference on Monday to outline a possible deal with British Steel.

Brussels ended up, although some small cap food stocks were hit by the scare over dioxin contamination in food. Ter Beke, a meat products maker, fell €2 to €55 while Corona-Lotus, a biscuits manufacturer, fell €2.10 to €61. Bel-20 index finished 49.02 higher at 3,135.04.