* FTSEurofirst 300 ends up 2 pct, up 3.7 pct on the week
* Investors brush aside dismal U.S. monthly jobs data
* Truckmaker Volvo soars on relief over cashflow
* For up-to-the-minute stocks news, click on []
By Blaise Robinson
PARIS, Feb 6 (Reuters) - European stocks ended higher on
Friday, rallying along with U.S. stocks as investors brushed
aside grim U.S. monthly jobs data and scooped up recently
beaten-down shares of banks and miners.
World No.2 truckmaker Volvo <VOLVb.ST> surged 16 percent
despite posting an operating loss in the fourth quarter amid
slowing orders, as investors were relieved the company was still
able to generate cash in the quarter.
The FTSEurofirst 300 <> index of top European shares
closed 2 percent higher at 826.37 points, posting a gain for the
week of 3.7 percent.
Data showed on Friday U.S. employers slashed 598,000 jobs in
January, the deepest cut in payrolls in 34 years as the
unemployment rate rose to 7.6 percent, signalling a deepening
economic slowdown.
"The markets have to a certain extent already written off
pretty much the first half of 2009 as ugly for jobs, but we will
need to see some evidence soon that all the fiscal stimuli are
having an effect," said Martin Slaney, head of derivatives at
GFT Global Markets, in London.
Banks gained ground, with Royal Bank of Scotland <RBS.L>
rising 9.1 percent and Deutsche Bank <DBKGn.DE> adding 5.7
percent.
Shares of mining companies were among the biggest gainers,
climbing along with metal prices on hopes of a recovery in
demand. Xstrata <XTA.L> rose 6 percent and Anglo American
<AAL.L> gained 6.2 percent.
"People have been very gloomy. But now we're getting signals
that things are not that bad after all in some economic areas
and for some companies," one Paris-based trader said.
"The focus is now on the early cyclicals, these stocks are
at relatively attractive levels. If we get a market rally, it
won't be driven by defensive stocks."
Despite Friday's rally, the FTSEurofirst 300 is still down
0.7 percent so far in 2009, after tumbling 45 percent last year,
hit by a credit crisis that has tipped the world economy into a
sharp downturn and forced governments to rescue a number of
struggling financial institutions.
The DJ Stoxx basic resources index <.SXPP>, which tumbled 65
percent in 2008, is up 20 percent so far this year, buoyed by
hopes that the raft of economic stimulus plans unveiled around
the world will revive demand for commodities.
Also on the upside, shares in luxury goods group LVMH
<LVMH.PA> surged 13 percent after it posted results that
reassured investors.
German chip maker Infineon <IFXGn.DE> was also up 13 percent
after the company unveiled an outlook that was less bleak than
its peers.
German car maker BMW <BMWG.DE> rose 12 percent after the
company released key figures for the year 2008 and said it met
its reduced outlook for a clear 2008 profit.
Stocks seen as defensive plays in a recessionary environment
-- utilities and pharmaceuticals -- were on the downside on
Friday, with GDF Suez <GSZ.PA> losing 5 percent and
GlaxoSmithKline <GSK.L> down 1.5 percent.
Around Europe, UK's FTSE 100 index <> gained 1.5
percent, Germany's DAX index <> rose 3 percent, and
France's CAC 40 <> added 1.8 percent.
(Reporting by Blaise Robinson; Editing by Jon Loades-Carter)
