LONDON (CNN) - European bourses closed higher Friday, reversing earlier losses as U.S. job market data showed the biggest economy was in much better health.
The jobless rate eased to 4.4 percent in May from 4.5 percent in April, confounding economists' predictions that unemployment would tick higher. Non-farm payrolls fell 19,000 against expectations of a 17,000 job shrinkage.
London's FTSE 100 rose 13.5 points to 5,809.6, with defensive stocks -- those expected to best handle a downturn in global economic conditions – leading gains.
Services company Rentokil Initial (RTO) closed up 4.88 percent, building on Thursday's near 13 percent jump due to its positive trading statement. The shares were further boosted by a ratings upgrade from Goldman Sachs, which also raised its price target on the stock to 245p from 220p.
Oil stock were the biggest winners in Europe. BP (BP-A), the world's third-largest publicly traded oil company, closed up 3 percent. Rival Shell Transport & Trading (SHEL), which owns 40 percent of the world's No. 2 oil company Royal/Dutch Shell, gained 1.2 percent.
In Paris, the CAC 40 blue chip index closed down 0.4 percent to 5,432.71, led by TotalFinaElf (PFP), the world's fifth-biggest oil company, which rose 1.8 percent.
French catering group Sodexho Alliance rose 3.6 percent, after lifting
uncertainty over a rights issue and in a knee-jerk reaction to enhanced earnings from a related acquisition. Sodexho, which will become the world's biggest contract caterer once it fully absorbs its U.S. unit Sodexho Marriott
Frankfurt's electronically traded Xetra Dax climbed 0.4 percent to 6,145.35. Allianz (FALZ), Europe's second-biggest insurer, rose 2.5 percent, extending the previous session gains, after saying it expects cost and income synergies from the merger with Dresdner Bank, Germany's No. 3 bank, of more than  1 billion by 2006. Dresdner (FDRB) rose 1.7 percent
The AEX index in Amsterdam fell 0.6 percent, with its heaviest stock, Royal KPN, the Netherlands's biggest phone company, plunging 20 percent after the Financial Times reported the company plans to sell 5.5 billion worth of shares to reduce its crippling debt mountain.
Milan's MIB30 index and the SMI in Zurich edged up 0.1 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was little changed, with the computer services, telecom and information technology sectors down more than 1 percent.
Among the regions biggest technology stocks, Europe's biggest software company, SAP (FSAP), lost 0.85 percent and IT consultant CMG (CMG) dropped 3.3 percent in London.
Semiconductor-related stocks were having a mixed session. Infineon Technologies (FIFX), Europe's No. 3 chipmaker, lost 1.6 percent and France's STMicroelectronics (PSTM), Europe's biggest chipmaker, shed 3.1 percent in Paris. UK chip designer ARM Holdings (ARM) gained 0.89 percent.
Alcatel (PCGE), Europe's fourth-largest telecom equipment maker, fell 2.2 percent on a report it and Pirelli, Europe's biggest supplier of cable, each bid more than $4 billion for Lucent Technologies' optical fiber and cable unit. Pirelli dipped 1.2 percent in Milan.
In late afternoon U.S. trading Friday, the Nasdaq composite index rose 1.4 percent to 2,140.8, while the Dow Jones industrial average was little changed at 10,958.79.
In the currency market, the euro rose slightly against the U.S. dollar to 84.76 cents from 84.50 cents in late Thursday trading in New York.
The euro showed little reaction earlier to Purchasing Managers' surveys from France, Italy and Germany, which showed manufacturing output falling in all three countries in May and French consumer confidence also fell in May. 
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