LONDON - European stock markets closed modestly higher Thursday, underpinned by Wall Street's gains, with sentiment supported by better-than-expected US jobs data.
The London FTSE 100 index gained 0.27 percent to 4,962.70 points, the Frankfurt DAX 30 rose 0.83 percent to 4,360.42, while in Paris the CAC 40 added 0.31 percent at 4,085.98.
The DJ Euro Stoxx 50 index of leading eurozone shares advanced 0.51 percent to 3,051.79 points.
The euro stood at 1.2620 dollars.
On Wall Street, US stocks were broadly higher, helped by a couple of encouraging economic reports, traders noted.
Leading indicators for April showed a decline of 0.2 percent, in line with market expectations, while initial jobless data surprised with a sharp drop in weekly claims.
The number of US workers filing for state unemployment benefits for the first time fell 20,000 to 321,000 in the week ended May 14 while economists were expecting only a drop in initial claims to about 331,000.
The Dow Jones Industrial Average gained 1.80 points to 10,466.20, while the Nasdaq Composite added 7.75 points to 2,038.40.
The mainly positive recent stream of US data pointing to a consolidating economic recovery boosted sentiment.
The Paris CAC-40 index, having closed above the key 4,000 level, was now poised to continue its advance to touch around 4,111 points, analysts at CDC Ixis said.
"The market really seems to be bullish," they said, adding that even if there is a slightly downturn in the sessions to come, this would be temporary and should not throw the overall trend off course for long.
In London, BT shares shot up 6.34 percent to 214 pence after the telecoms operator posted slightly better-than-expected full-year results, as strengthening demand for its 'new wave' products and corporate IT services offset weakness at its traditional fixed-line business.
Troubled health and beauty retailer Boots climbed 2.26 percent to 610.50 pence after reporting full-year results slightly ahead of expectations.
On the downside, confectionery and soft drinks giant Cadbury Schweppes lost 1.83 percent at 536 pence after its report to an annual general meeting failed to spark enthusiasm.
In Paris, Air France-KLM edged up 0.69 percent to 13.09 euros after raising annual net profit by 20 percent with rapid savings from its merger and through hedging to cover the rise of the price of fuel.
German sportswear and equipment maker Adidas-Salomon leaped 2.47 percent higher to 133.00 euros in Frankfurt. Dealers said there was a big buyer of Adidas-Salomon stock in the market and that hopes of a good second half of 2005 for the company boosted sentiment towards the issue.
Elsewhere in Europe, the Swiss Market Index added 0.35 percent at 6,017.8 points.
The Amsterdam AEX rose 0.61 percent to 363.21 points, the Brussels Bel-20 climbed 0.63 percent to 3,073.71, the Madrid Ibex-35 gained 0.38 percent at 9,400.10 and the Milan SP/Mib advanced 0.22 percent to 31,635.0.
Earlier in Asia, Tokyo's Nikkei-225 index jumped 2.23 percent to 11,077.2 points and Hong Kong's Hang Seng Index rose 0.53 percent to 13,698.9.