European equities climb ahead of vital US jobs data

Europe's stock markets rose Friday before the release of a key US jobs report, which could signal the likelihood of a Federal Reserve rate hike any time soon, dealers said.

London's FTSE 100 index jumped 1.60 percent to 6,169.80 points nearing midday in the British capital.

In the eurozone, Frankfurt's DAX 30 won 1.58 percent to 9,659.20 points and the Paris CAC 40 rallied 1.97 percent to 4,513.70 compared with Thursday's close.

In foreign exchange deals, the European single currency dipped to $1.1165, down from $1.1187 late in New York on Thursday, as investor caution prevailed before the non-farm payrolls data.

"There?s a lot of focus being paid to today?s US labour data," said dealer Jonathan Sudaria at traders London Capital Group.

Analysts expect Friday's jobs report will show the US economy added 205,000 jobs in September and the unemployment rate was unchanged at 5.1 percent, a seven-year low.

The employment data is important because an improvement in the US labour market is a key factor supporting the Federal Reserve's plan to hike its near-zero interest rates, analysts said.

"After what has been another topsy-turvy week for equities, investors will be bracing themselves for US jobs data which may usher in a rate hike before year is out," said Mike McCudden, head of derivatives at online broker Interactive Investor.

"However, while inflation remains subdued, the Fed can afford to hold off until Asian markets calm down.

"That may see us in to the new year, but regardless, markets have priced in the inevitable hike and the UK will probably follow suit."

Bank of England governor Mark Carney had indicated in July that British interest rates could begin to climb from their current record-low level around the turn of this year.

- UK banks boosted -

In London, the banking sector performed strongly after the Financial Conduct Authority regulator unveiled plans to impose a two-year deadline on claims for mis-sold credit insurance.

British banks have so far paid out about £25 billion ($38 billion, 34 billion euros) to customers who were mis-sold payment protection insurance (PPI).

Lloyds Banking Group shares surged 2.91 percent to 77.41 pence, Barclays added 2.06 percent to 252.25 pence and HSBC won 1.93 percent to 512.70 pence.

Royal Bank of Scotland was meanwhile 1.69 percent higher at 324.60 pence.

"The financial sector has led the gains on the FTSE 100, with banks and insurers bolstered by a proposal by the FCA to put an end date on PPI claims," noted CMC Markets analyst Jasper Lawler.

PPI provided insurance for consumers should they fail to meet repayments on a credit product such as consumer loans, mortgages or payment cards

However, the insurance was mis-sold to millions of people who either had no idea what they were buying or had little chance of making a successful claim.

On the downside in London, credit-checking company Experian plunged 4.09 percent to 1,031 pence, after admitting that 15 million US customers had their personal data hacked.

The affected customers are clients of T-Mobile USA -- the American unit of the German mobile phone giant.

The hacked data included names, dates of birth, addresses, social security numbers and other forms of identification like drivers' license numbers, as well as additional information. No payment card or banking information was acquired.

An Experian spokesman stressed that it was an "isolated incident", adding that the group's consumer credit data base was not accessed.