Eiffage shares surge 12% after earnings By Sara Sjolin, MarketWatch LONDON (MarketWatch) — European stock markets edged higher Friday, with oil firms pointing north on the back of a continuing push higher for crude prices and upbeat earnings spurring optimism among investors. Bank stocks were also higher. The Stoxx Europe 600 index XX:SXXP +0.34% was up 0.3% at 264.90, set to break a three-day losing streak. The biggest gainer in the index, Eiffage SA FR:FGR +11.53% , surged 11.7% after reporting a decline in 2011 profit. The firm said that the second half of the year was upbeat and that the trend is expected to continue in 2012. Also jumping to the top of the index Friday, Telecom Italia SpA IT:TIT +5.98% added 6% in Milan. The telecommunications firm reported better-than-expected earnings and proposed a dividend payout of 900 million euros ($1.2 billion) for the year. Stoxx 600 heavyweight Statoil ASA NO:STL +2.00% STO +2.09% rose 2% after the Norwegian oil and gas group said it made a significant gas discovery offshore Tanzania, its fifth biggest find in the past 12 months. The broader oil sector was helping drive the positive mood in Europe as crude-oil futures for April delivery CLJ2 +0.56% rose above $108 a barrel. BP PLC BP +0.59% UK:BP +1.02% rose over 1% and BG Group PLC UK:BG +1.01% added 1%, supporting the FTSE 100 index UK:UKX +0.22% , up 0.1% at 5,944.27. Lloyds Banking Group PLC UK:LLOY -1.03% was among the top London decliners with a 1.2% fall after reporting a sharply wider loss in 2011 and warning of a tough year ahead. Also down in London, Reckitt Benckiser Group PLC UK:RB -2.09% shed 2.5% after a downgrade from Goldman Sachs to neutral from buy. Food retailer Unilever PLC UK:ULVR -2.82% was off 2.2%, after peer company Procter & Gamble Co. PG +0.20% late Thursday said it plans to cut costs by $10 billion over the next four years. In France, the French CAC 40 index FR:PX1 +0.61% rose 0.6% to 3,467.21. Heavyweight oil major Total SA FR:FP +0.41% TOT +0.48% added 0.6%, while banks Societe Generale SA FR:GLE +3.87% and BNP Paribas SA FR:BNP +1.93% FR:BNP +1.93% , rose 4.1% and 2%, respectively. Other European banks added to the positive banking trend and KBC Group NV BE:KBC +3.48% was up 4.2%, Erste Group Bank AG gained 3.3% and Banco Espirito Santo SA PT:BES +3.02% added 3.7%. In Germany, Deutsche Bank AG DE:DBK +3.81% rose 3.7%, helping lift the DAX 30 index DX:DAX +0.88% 0.9% to 6,866.09. The index was further supported by heavyweight BASF SE DE:BAS +1.41% , up 1.3% after fourth-quarter profit and sales beat analysts estimates. BASF was upbeat on 2012, saying it expects to surpass record sales and adjusted earnings reported last year. SAP AG DE:SAP +1.71% advanced 2.2% after it announced a sharp dividend hike for 2011, along with a one-time dividend payout following record profit last year. Sara Sjolin is a MarketWatch reporter, based in London.

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