Quotes from the news wire:
There's a sense of relief. There's so much nervousness in the market at the moment that even slightly good news out of a bank like Commerzbank is taken very well, the German banking sector has been pretty battered, and The German banking sector's got to a point where there may be value there, so long as global economic factors start to calm down. Germany's DAX was up 1.4 percent. Traders said that growth data from Germany, which showed growth was steady and in line with expectations, provided reassurance after economic fears had pegged back markets this week. The FTSEurofirst 300 nonetheless remains down 5 percent this week, with banks still down around 7.5 percent on the week, hit by concerns over profitability in a low growth, low interest rate environment. Caution over exposure to default from the energy sector has also hindered bank stocks. On Friday, the oil and gas sector rose 3.1 percent after a rally in oil which left crude prices up over 3 percent. Growth sensitive mining stocks also rallied, up over 3 percent. In other corporate news, Rolls Royce rallied 11.9 percent after Rolls Royce results, Rolls Royce biggest one-day rise since November 2008. It stuck to its 2016 guidance, despite being forced to cut its dividend following three profit warnings last year. It said there would be no need for a rights issue.