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European markets climb
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February 1, 2002: 8:09 a.m. ET
Hopes of economic recovery boost stocks, Swiss Life profit warning hits insurer
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LONDON (CNN) - European bourses rose on Friday amid hope that signs of an economic recovery may drive international growth.
The U.S. Federal Reserve said on Wednesday the U.S. economy, the world's biggest, may turn the corner. Further evidence should come in the form of the latest unemployment numbers at 1330 GMT.
America's corporate sector received a boost on Thursday after consumer products giant Procter & Gamble said on Thursday sales were rising at last. Anglo-Dutch rival Unilever (ULVR) rose 2 percent in Amsterdam.
London's FTSE 100 rose 1.1 percent to 5,220.5 and the CAC 40 blue chip index in Paris gained 0.7 percent to 4,491.25, while Frankfurt's electronically traded Xetra Dax climbed 1 percent to 5,155.66.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 0.9 percent, with IT, telecom and computer services sectors in positive territory.
Cap Gemini Ernst & Young (PCAP), Europe's biggest computer services company, rose 3 percent and the region's biggest media company Vivendi Universal (PEX) climbed 2.9 percent in Paris.
DaimlerChrysler (FDCX), the world's third-biggest car maker, rose 1.9 percent in Frankfurt.
Alcatel, Europe's fourth-biggest telecom equipment maker, extended the previous session's gains, rising 2 percent. The company said on Thursday it expects the telecom market to pick up in the second quarter of this year.
Finland's Nokia, the world's biggest maker of mobile phones, advanced 2.1 percent in Helsinki and Sweden's Ericsson, the biggest supplier of wireless infrastructure, rose 1.3 percent.
Smith & Nephew [NS-], which makes artificial hips and knee implants, rose 4.8 percent in London, ahead of its earnings report on Monday. It is expected to say pretax profit was flat at about £170 million ($239 million) but the underlying business picture is buoyant, analysts told Reuters.
British Airways (BAY), Europe's biggest airline, soared 4.8 percent. The airline, which has been hit hard by the slowdown in traffic following September 11, is expected to report results on Monday.
Deutsche Lufthansa (FDHA), Europe's No.2, gained 2.3 percent in Frankfurt.
The life assurance and insurance sectors lost more than 1 percent each amid concerns about possible exposure to struggling firms and dented income from falling stock markets.
Swiss Life, Switzerland's largest life insurer, plunged almost 10 percent. The issuers said late Thursday it plans to cut costs by 20 percent because it could not meet returns on pensions it was obliged by law to do so.
Zurich Financial fell 2.1 percent, Dutch Aegon dropped 1.7 percent, France's AXA slid 1.4 percent, reinsurer Allianz dipped 1.7 percent and British insurers CGNU (CGNU) and Prudential (PRU) shed more than 1 percent each.
Among Europe's smaller markets, Amsterdam's AEX index rose 0.5 percent and Milan's MIB30 index climbed 0.6 percent, while the SMI in Zurich added 0.5 percent.
In the U.S. on Thursday, big gains in Procter & Gamble propelled the Dow Jones industrial average higher Thursday in a rally unable to save the stock market from a losing month.
Second-quarter profit at Procter & Gamble (PG: up $3.39 to $81.68, Research, Estimates) topped forecasts, rising to $1.03 a share, as the maker of Pampers, Tide, and Crest said it's on track to meet forecasts for its current fiscal year.
The Nasdaq composite index rose 1.1 percent to 1,934.03, while the Dow Jones industrial average climbed 157.14 points, or 1.6 percent, to 9,920.0.
Wall Street was expected to open little changed later on Friday. S&P 500 index futures rose 0.8 points to 1,131.2 on the Globex trading system, while fair value, a measure that takes account of interest costs and dividend payments, was calculated at 1,130.40. 
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