By Barbara Kollmeyer, MarketWatch MADRID (MarketWatch) -- European stocks pushed higher on Friday, gaining after upbeat retail sales data for the euro zone, but action remained subdued ahead of key U.S. nonfarm payrolls data due later in the session. The Stoxx Europe 600 index (ST:SXXP 259.09, +0.91, +0.35%) gained 0.2% to 258.66 points, after ending unchanged on Thursday at 258.18 points, with bigger gains becoming muted by the day's end after an initial boost on a string of upbeat U.S. economic data. Markets Friday perked up a bit on news that retail sales volumes in the 16-nation euro zone rose 0.1% in July, after a revised 0.2% rise in June, Eurostat reported. Against July 2009, sales were up 1.1%. Economists had been looking for a flat monthly reading and a 0.7% annual rise. Economic data from the euro zone, meanwhile, pointed to slower growth on the private-sector side. The Markit euro-zone August composite purchasing managers' index fell to 56.2 from 56.7 in July, slightly above last month's 56.1 reading. Asian markets finished mostly higher, outside of Shanghai, while U.S. futures markets shifted to a slightly positive stance. Asia stocks close week on mostly higher note All eyes will be on August nonfarm payrolls data due for release at 8:30 a.m. Eastern time. Economists surveyed by MarketWatch forecast a net gain of 30,000 private-sector jobs, but an overall decline of 105,000. Analysts warned that if the jobs data fall short, it could reverse the big rally seen for markets on Wednesday. The Stoxx 600 index logged a 2.7% gain that day, while the Dow Jones Industrial Average (DJIA 10,320, +50.63, +0.49%) rose 254.75 points, or 2.5%. Ben Potter, market strategist at IG Markets, said "anything with a bit of gloss on it could help again lock in confidence for equities." "Another risk, however, comes with the U.S. Labor Day holiday on Monday, so any uncertainty could add to the temptation to take money off the table, ensuring traders don't get caught on the wrong side of any big move lower in Asia or Europe at the start of next week," he added. Regional indexes added to earlier gains. Germany's DAX-30 (DX:DAX 6,107, +23.21, +0.38%) rose 0.4% to 6,109.07 points. Moving higher were Merck KGaA (DE:MRK 70.84, +2.00, +2.91%) , up 2.64%; Man (DE:MAN 73.00, +1.53, +2.14%) , up 1.7%; and SAP (SAP 45.29, +0.57, +1.27%) (DE:SAP 35.85, +0.57, +1.60%) , up 1.5%. France's CAC-40 index (FR:PX1 3,654, +22.51, +0.62%) rose 0.6% to 3,653.42 points, with Cap Gemini (FR:CAP 35.77, +0.80, +2.27%) up 2.3%, with those shares continuing to gain a day after the company announced a deal to buy a 55% stake in CPM Braxis, Brazil's biggest information technology group. On the downside, shares of Pernod Ricard (FR:RI 60.02, -1.21, -1.98%) fell 2.3%, with shares continuing to give back much of the gains from the prior session after it reported upbeat earnings. The U.K. FTSE 100 index (UK:UKX 5,397, +25.57, +0.48%) gained 0.5% to 5,398.09 points. Among sectors contributing to the positive European tone were banks and oil stocks, while telecoms groups like Vodafone (VOD 24.35, +0.07, +0.29%) (UK:VOD 157.80, +0.50, +0.32%) also lifted the Stoxx 600, with those shares up 0.7% in London. Among banking stocks, shares of Barclays Bank (UK:BARC 318.40, +6.40, +2.05%) rose 2.3% in London, while Societe Generale (FR:GLE 43.65, +0.88, +2.05%) rose 1.6% in Paris. Shares of BP PLC (BP 36.57, +0.41, +1.13%) (UK:BP. 392.90, +0.30, +0.08%) gained 0.4% after the firm said the total cost of responding to the Gulf of Mexico oil spill has now reached $8 billion. The company has created a $20 billion escrow account to cover related costs of the spill. In Zurich, shares of Roche Holding AG (CH:ROG 142.30, +2.60, +1.86%) fell 0.3%, giving up earlier gains after the Swiss pharmaceutical firm announced a cost-cutting initiative and confirmed its full-year outlook.

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