European stock markets rally

European stock markets surged on Friday as investors snapped up bargains, ending a roller-coaster week marked by alarm over flagging global growth, a reemergence of eurozone tensions and the Ebola virus spreading.

Having already mounted a robust late recovery on Thursday following sharp losses earlier in the session, indices shot higher heading into the weekend.

The euro was up against the dollar and British pound.

"European equity markets are clawing back some of this week's losses," said Alastair McCaig, market analyst at traders IG.

"As attractive as many equity and index levels might be, it would be surprising to see the bulls become too enthusiastic."

In late morning trade, London's benchmark FTSE 100 index of top companies jumped 1.0 percent to 6,257.77 points compared with Thursday's closing level.

Frankfurt's DAX 30 index soared 1.67 percent to 8,726.17 points and the CAC 40 in Paris won 1.70 percent to 3,985.19.

The Athens market surged more than 5.0 percent after sizeable falls this week, and the yield on Greek 10-year bonds fell to 8.009 percent, although this was still much higher than the rates of under 6 percent it was paying one month ago.

European stock markets had recorded intra-day losses of 2.0-3.0 percent on Thursday before pulling back late in the session, leaving Frankfurt to end with a modest gain.

Investors had been gripped by panic after weak eurozone inflation data, poor demand at a Spanish bond auction and concern that Greece could be set for a fresh financial crisis when it exits its bailout plan.

"Financial markets have endured some brutal swings in price action over the past few days, as uncertainty has built up over the outlook for global growth," said Michael Hewson, chief market analyst at traders CMC Markets UK.

"What the recent volatility does illustrate though is how unsure investors have become after what had been pretty much a one way bet on stocks for the last five years."

-- Rolls roiled --

While the European car sector rose on Friday after European auto trade data showed that sales of vehicles rose by 6.4 percent in September on a 12-month basis.

Shares in Volkswagen climbed 2.4 percent to 157.80 euros as it extended its lead in European car sales, while shares in Peugeot jumped 4.8 to 9.08 euros, and Renault rose 3.4 percent to 54.15 euros.

Meanwhile shares in Rolls-Royce slumped as the group issued a profit warning.

Rolls tumbled 11.43 percent to 833 pence after the British maker of engines announced on Friday that it was slashing its earnings forecasts partly as result of Western trade sanctions against Russia, causing a share price collapse.

Rolls said underlying profit in 2015 would be flat at best compared with 2014 but could come in three percent lower. The company had previously expected earnings to grow next year.

Shoemaker to the stars Jimmy Choo meanwhile stepped out Friday on the London stock market in a float valuing it at £545.6 million ($877 million, 685 million euros).

Jimmy Choo, whose celebrity fans include Kate Middleton, Michelle Obama, Nicole Kidman and Lady Gaga, began conditional dealings with shares priced at 140 pence on the London Stock Exchange.

The IPO is aimed at raising cash to help the shoemaker tap further into strong Asian demand for luxury goods, particularly in China and Japan.

Shares in French digital security company plunged 6.9 percent to 61.87 euros in what one trader explained was a development by Apple to directly integrate SIM cards into its new iPad, allowing users to switch subscriptions by downloads instead of needing a new chip.

The company said investors dumping its shares did not understand in getting rid of the switchable SIM cards means the equipment needs an ultra-secure platform in which it is also an industry leader.

"With this system there is more frequent need for remote management. This is good news for us," said the company.

In foreign exchange, the euro gained to $1.2834 from $1.2809 late in New York on Thursday.

The European single currency climbed to 79.64 British pence from 79.59 pence.

The pound was worth $1.6116, up from $1.6091 on Thursday.

On the London Bullion Market, the price of gold rose to $1,239.16 an ounce from $1,237.75.

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