BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets ended Friday's session solidly in positive territory. Traders were in an upbeat mood after the U.K. reached a divorce deal with the European Union, setting stage to move on to future trade talks post-Brexit.
European Commission President Jean-Claude Juncker confirmed that enough progress had been made in talks to proceed to the second phase of negotiations.
The deal ruled out a hard border for Northern Ireland and guaranteed the rights of three million EU citizens in the UK.
Banks were among the top performing stocks at the end of the trading week, after global financial regulators agreed on the new banking regulations in Frankfurt on Thursday.
The pan-European Stoxx Europe 600 index advanced 0.79 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.51 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.77 percent.
The DAX of Germany climbed 0.83 percent and the CAC 40 of France rose 0.28 percent. The FTSE 100 of the U.K. gained 1.00 percent and the SMI of Switzerland finished higher by 0.52 percent.
In Frankfurt, furniture retailer Steinhoff tumbled 19.66 percent to extend declines after Moody's downgraded the issuer ratings of the company.
Munich Re gained 0.52 percent and Swiss Re dipped 0.11 percent in Zurich after entering into agreements with Insurance Australia Group to share premiums.
Deutsche Bank increased 3.16 percent and Commerzbank rose 2.18 percent.
In Paris, Air France-KLM advanced 0.48 percent after reporting a 5.7 percent increase in passenger traffic for November.
Societe Generale increased 2.25 percent and Credit Agricole added 3.86 percent. BNP Paribas also finished higher by 3.01 percent.
In London, Berkeley jumped 6.94 percent. The British homebuilder raised its profit guidance for the next five years after reporting a 36 percent increase in pre-tax profits in the six months to October 31.
Vodafone advanced 0.68 percent after abandoning plans for a merger between Vodafone Malta and Melita.
Barclays climbed 2.48 percent and Royal Bank of Scotland closed higher by 2.14 percent. Lloyds Banking Group gained 3.55 percent and Standard Chartered added 1.04 percent. HSBC also finished up by 1.03 percent.
Germany's exports declined unexpectedly in October, while imports rebounded at a faster-than-expected pace on domestic demand, data from Destatis showed Friday.
Exports decreased 0.4 percent month-on-month in October, the same as seen in September. Shipments were forecast to grow 1 percent. This was the second straight decline in exports.
Meanwhile, imports advanced 1.8 percent, reversing September's 1.1 percent decrease. Economists had forecast a 1 percent increase.
As a result, the trade surplus fell to a seasonally adjusted EUR 19.9 billion from EUR 21.9 billion in the previous month.
Germany's labor cost growth slowed slightly in the third quarter, data from Destatis showed Friday. The index of labor cost increased 2.2 percent year-on-year in the third quarter, following the second quarter's 2.3 percent rise.
France's industrial production grew for the second straight month in October, defying economists' forecast for a slight decline, data from the statistical office Insee showed Friday. Industrial production climbed 1.9 percent month-over-month in October, faster than the 0.8 percent rise in September. Meanwhile, economists had expected a 0.1 percent fall for the month.
UK industrial production remained unchanged in October, data from the Office for National Statistics showed Friday. Industrial production remained flat, as expected, after expanding 0.7 percent in September.
The UK visible trade deficit increased in October after narrowing a month ago, the Office for National Statistics said Friday. The trade in goods showed a shortfall of GBP 10.78 billion compared to a GBP 10.45 billion deficit in September. The expected level was GBP 11.5 billion.
China's exports expanded much faster than expected in November but the annual increase in imports outpaced export growth, data from the General Administration of Customs showed Friday.
In dollar terms, exports advanced 12.3 percent year-over-year in November, well above the 5.9 percent rise economists had forecast.
Similarly, imports surged 17.7 percent in November from a year ago, faster than the expected growth of 13.0 percent.
As a result, the trade surplus totaled $40.2 billion in November. The surplus was forecast to fall to $35.0 billion from about $38.2 billion in October.
Employment in the U.S. increased by more than anticipated in the month of November, according to a report released by the Labor Department on Friday, although the report also showed weaker than expected wage growth during the month.
The report said non-farm payroll employment jumped by 228,000 jobs in November after surging up by a revised 244,000 in October.
Economists had expected employment to climb by 200,000 jobs compared to the addition of 261,000 jobs originally reported for the previous month.
The report also said the unemployment rate came in at 4.1 percent in November, unchanged from October and in line with economist estimates.
Copyright RTT News/dpa-AFX