European stock markets closed up 3.2 percent, banking stocks led gains

European stock markets sharply Friday, Citigroup Inc. (CN) announced better than expected performance of local banking stocks led gains.

The pan-European blue chips The FTSEurofirst 300 index closed up 1.56 percent to 1164.19 points.

This week, the index rose about 3.2 percent, but this year is still down about 23 percent.

The largest U.S. banks - Citigroup announced quarterly loss 2.5 billion U.S. dollars, less than expected, pushed up DJStoxx European bank index rose 4.9 percent.

UBS (UBSN.VX) jumped 7.6 percent, Royal Bank of Scotland (RBS.L) soaring 9.6 percent.

In addition to banking stocks, pharmaceutical stocks have good performance, the former Teva Pharmaceutical Industries (TEVA.O) announced a 42 percent premium, or 7.5 billion U.S. dollars acquisition of drugmaker Barr (BRL.N).

Stada (STAGn.DE) or 2.5 percent, Roche (ROG.VX) rose 1.6%, Sanofi-Aventis (SASY.PA) rose 2.1 percent.

Because metal prices fell, mining stocks weighed on the market. Anglo American Group (AAL.L) or 1.1 percent, Rio Tinto (RIO.L) or 1.3 percent, BHP Billiton (BLT.L) fell 1.8 percent.

European markets, Britain's FTSE 100 index. FTSE rose 1.7 percent, to close at 5376.4 points; Germany's DAX index. GDAXI closed up 1.78 percent, at 6382.65, while the French CAC-40 index. FCHI freshened up 1.74 percent, at 4299.36 points .