Europe Stocks Surge Before U.S. Jobs Report

European stock markets headed for weekly gains on Friday, recouping from a sharp selloff the prior day in the wake of disappointment with the European Central Bank, while investors looked toward U.S. jobs data due later in the day.

The Stoxx Europe 600 index XX:SXXP +0.96% picked up 0.5% to 260.49, poised to close out the week with a 0.3% gain. On Thursday, the index tumbled 1.3% as ECB President Mario Draghi failed to deliver any specific measures on how to tackle the region’s debt crisis, when speaking at his monthly news conference in Frankfurt.

The gain helped lift the German DAX 30 index DX:DAX +1.52%  0.9% to 6,665.73. Banks, which were hit hard in Thursday’s selloff, partly recovered, with Deutsche Bank AG DE:DBK +3.97%  up 3.3% and Commerzbank AG DE:CBK +4.64%  2.3% higher.

Insurance firm Allianz SE DE:ALV +3.80%  moved 1.5% higher, after posting a 23% rise in second-quarter profit. Allianz quarterly profit rises 23%.

Banks were also on the rise in France and moving to the top of the French benchmark index. Société Générale SA FR:GLE +4.76%  advanced 3.9%, Credit Agricole SA FR:ACA +3.62%  gained 3.3% and BNP Paribas SA FR:BNP +4.52%  rose 3.1%.

The CAC 40 index FR:PX1 +1.62%  traded 0.9% higher at 3,260.19.

In the U.K., resource firms and banks provided support to the FTSE 100 index UK:UKX +1.07% , which gained 0.5% to 5.692.54. Miner BHP Billiton PLC UK:BLT +1.88% BHP -0.05%  added 1%, Anglo American PLC UK:AAL +1.90%  took on 1.4%, while oil group BP PLC UK:BP +0.61%   BP -0.50%  rose 0.6%.

Royal Bank of Scotland Group PLC UK:RBS +4.74%   RBS -4.80%  picked up 3%, shrugging off a first-half loss. Royal Bank of Scotland Group loss widens

Heavyweight HSBC Holdings PLC UK:HSBA +2.28%   HBC -0.48%  rose 1%.

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