By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Most European stock markets held on to gains on Friday, after some mixed U.S. jobs data, while Spanish stocks slumped after a short-selling ban was lifted.

The Stoxx Europe 600 index added 0.5% to 288.68, recouping from a 0.5% loss on Thursday.

Shares of BT Group PLC jumped 7%, after the U.K. telecom operator posted better-than-expected third-quarter earnings and said its full-year financial outlook remains unchanged.

Shares of Swedbank AB advanced 1.6%, as Deutsche Bank lifted the bank to buy from hold.

On a more downbeat note, shares of home-appliances firm Electrolux AB slumped 6.7%. The company said the market situation in Europe is likely to get worse, but that it will be offset by growth in North America and emerging markets.

The broader European stock markets stayed in positive territory after data from the U.S. showed 157,000 more jobs were added to the economy in January, while the unemployment rate rose to 7.9% from 7.8%. Economists surveyed by MarketWatch expected an increase of 170,000 jobs last month, with unemployment dipping to 7.7%.

Additionally, gains for December and November were revised sharply higher, with December revised to 196,000 from 155,000 and November's figure revised up to 247,000.

U.S. stock-index futures pointed to a higher open on Wall Street.

"For every step the U.S. economy takes forward, it seems to take one step back. Like other developed economies around the world, it just can't seem to maintain momentum," said Marcus Bullus, trading director at MB Capital, in emailed comments.

"In January, we've had weak GDP, weaker than expected jobs growth and the best start to the year for the S&P since 1997. There's neither rhyme nor reason in the market at present," he added.

"The bulls will argue that this minor reality shot could actually be what's needed to allow investors on the sidelines the dip they need to get in and set us up for a more positive year."

China and Europe PMI

Back in Europe, mining firms showed positive moves, after some mixed readings on Chinese manufacturing data. HSBC's final print of the manufacturing Purchasing Managers' Index for January came in at 52.3, up from the survey's initial reading of 51.9, while the official PMI reading showed business activity remained in expansion territory, although at a slower pace than in December.

Shares of Rio Tinto PLC (RIO) put on 2.1%, while BHP Billiton PLC (BHP) rose 1.7%.

The FTSE 100 index traded 0.7% higher at 6,319.45.

Data from the euro zone showed the manufacturing sector continued to shrink in January, but at the slowest pace in 11 months. Markit's final PMI rose to 47.9 from 46.1 in December, coming in above an earlier estimate of 47.5.

Separately, a report showed euro-zone unemployment held steady at 11.7% in December. The unemployment rate for November was revised to 11.7% from 11.8%.

Spanish stocks on the decline

Spanish stocks were under heavy selling pressure, after authorities on Thursday lifted a ban on short selling. The short-selling ban was introduced last year during high volatility and pressure on the country's equities and sovereign bonds.

The IBEX 35 index lost 1.9% to 8,202.40, with shares of Banco Santander SA (SAN) down 3.2%.

Among other country-specific indexes in Europe, Germany's DAX 30 index rose 0.4% to 7,805.83. Shares of Infineon Technologies AG rose 2.1%, after J.P. Morgan Cazenove lifted its 2013 earnings estimates 5.8%, saying industrial orders have finally bottomed and will improve.

Peer form STMicroelectronics NV jumped 4% in Paris, also helped higher by a 8.2% 2013 estimate change from J.P. Morgan Cazenove.

Shares of Credit Agricole SA was also higher in France, up 2.2%, shaking off news that the bank's fourth-quarter earnings will be bit by goodwill impairment charges of 2.68 billion euros ($3.64 billion).

Among other French banks, BNP Paribas SA rose 1.1% and Société Générale SA gained 1%.

Shares of LVMH Moët Hennessy Louis Vuitton picked up 0.7%, after the luxury-goods firm late Thursday said it is confident for 2013 as full-year profit for 2012 jumped 12%.

France's CAC 40 index rallied 1.1% to 3,771.68.

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