EUROPE MARKETS: Stoxx 600 Heads For 3-month High After Scotland Vote

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Most European stock markets headed for a solid finish to the week on Friday, with the benchmark Stoxx Europe 60 index flirting with the highest closing level in three months, after Scotland voted to stay within the United Kingdom.

The upbeat trading mood came as the final result of the Scottish referendum showed 55% of the voters rejected the independence questions, a much more convincing win that polls had indicated leading up to the vote. Read: Scotland's 'No' vote: What strategists are saying

Market reaction: The pan-European Stoxx Europe 600 index climbed 0.4% to 349.32, setting it on track for the lowest closing level since June 10.

The U.K.'s FTSE 100 index jumped 0.7% to 6,863.36, in relief that the U.K. will stay together. Scotland-exposed banks, such as Royal Bank of Scotland Group PLC (RBS), rising 2.7%, and Lloyds Banking Group PLC (LYG), up 0.9%, helped lift the index.

The pound (GBPUSD) jumped to as high as $1.6526 overnight from when the initial polling results pointed to a majority of Scottish voters rejecting independence. However, the rally fizzled on Friday morning, which some analysts explained by short-term investors taking some profits. Sterling traded at $1.6349 at the latest, down from around $1.6400 when the polls closed on Thursday.

French downgrade rumors: France's CAC 40 index underperformed the other major bourses and was marginally lower at 4,464.23 amid rumors that Moody's Investors Service might downgrade the country's credit rating later on Friday.

The rumor started when French newspaper L'Opinion Thursday reported that Moody's had given the French government notice about a possible downgrade of its credit rating to AA2 from AA1. However, the French government said it had not been notified and Finance Minister Michel Sapin said on Friday he wants the country's market regulator to open an investigation into the newspaper report.

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