By Carla Mozee, MarketWatch

European stocks rose Friday, coming back from a sharp selloff in the previous session, ahead of the release of economic growth figures for the eurozone.

The Stoxx Europe 600 gained 1.3% to 307.57, with oil and gas and financial shares leading all sectors higher.

Topping the index was Commerzbank AG (CBK.XE), with shares charging up 13% after the lender said it plans to pay a dividend of 20 euro cents (23 U.S. cents) a share, the first dividend since 2007. The move comes as the bank swung to a fourth-quarter profit.

The Stoxx 600's rise was a bit of relief after Thursday's tumble of 3.7% (http://www.marketwatch.com/story/european-stocks-knocked-to-lowest-since-2013-as-fear-selling-returns-2016-02-11) to 303.58, its lowest close since September 2013. That was also the largest percentage drop since August, FactSet data showed.

"Traders are thinking enough is enough, and let's bag some bargain[s] and this is despite the fact that we had a heavy selloff over in Asia," said Naeem Aslam, chief market analyst at AvaTrade, in a note.

In Asia overnight, the Nikkei Stock Average slid 4.8% as the yen rose against the dollar.

"However, if the downward spiral for the global equity market is coming to an end, it is way too early to say," Aslam added. "The bounce which we may experience may not last for long, as investors are apprehensive about the banking sector, due to the low interest rate environment and feeble growth."

For the week, the Stoxx 600 is on track for a 5.4% decline. That would build on last week's fall of 4.8%. So far this year, the benchmark has lost nearly 16%.

In Frankfurt Friday, the DAX 30 gained 1% to 8,841.50. France's CAC 40 picked up 1% at 3,936.63 and the U.K's FTSE 100 gained 1.5% to 5,618

Data: Coming up at 10 a.m. London time, or 5 a.m. Eastern Time, is the first release of fourth-quarter economic-growth figures for the eurozone. Analysts polled by FactSet expect a rise of 0.3% in gross domestic product, from the third quarter.

"The market ... expects that growth in the eurozone as a whole remained steady in Q4," coming after data from purchasing managers' indexes, said Marshall Gittler, head of investment research at FXPrimus, in a note.

"However, the link between growth and inflation or growth and market interest rates seem to have been broken, so even a decent number probably won't change any views on ECB policy or the euro," he added.

The market has already received Germany's fourth-quarter report, which showed Europe's largest economy grew at a rate of 0.3% (http://www.marketwatch.com/story/german-gdp-grows-03-meeting-views-2016-02-12) as exports fell.

The euro was down 0.3% at $1.1276 ahead of the eurozone growth report.

Also at 10 a.m. London time, the December reading of eurozone industrial production is scheduled for release. Analysts are looking for a rise of 0.3%.

 

(END) Dow Jones Newswires

February 12, 2016 04:01 ET (09:01 GMT)

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