European stocks were higher on Friday, and America's strong non-farm payrolls report boosted investors' confidence in the US economy.
The Stoxx Europe 600 Index closed up 0.4%. Banking and energy stocks saw the biggest gains.
Despite Friday's rise, the European regional benchmark index is still down about 1.8% this week. Oil prices are likely to record their biggest weekly increase in two years due to market fears that Israel may decide to attack Iran's oil facilities in retaliation.
Amid geopolitical uncertainty, the bright future of the US economy has encouraged investors. Traders quickly cut their bets on the Federal Reserve's interest rate cut in November. The Federal Reserve cut interest rates by 50 basis points in September to boost economic growth.
Friday's non-farm payrolls report showed that US non-farm payrolls surpassed all expectations in September, the unemployment rate dropped unexpectedly, and wage growth accelerated.
“Today's employment data shows that the Federal Reserve's actions are well supporting its mission of full employment,” said Richard Flynn, managing director of Schwab Wealth Management UK.