By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- Most European stock markets rose on Friday, as euro-zone data showed signs of a recovery, although Spanish stocks slumped after a short-selling ban was lifted.

The Stoxx Europe 600 index added 0.3% to 287.95, recouping from a 0.5% loss on Thursday.

Shares of BT Group PLC jumped 5.4%, 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 2.6%, as Deutsche Bank lifted the bank to buy from hold.

On a more downbeat note, shares of home-appliances firm Electrolux AB slumped 6.5%. 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.

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 1.4%, while BHP Billiton PLC (BHP) rose 1%.

The FTSE 100 index traded 0.4% higher at 6,301.16.

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 8,207.20, with shares of Banco Santander SA (SAN) down 3.5%.

Nonfarm-payrolls data and unemployment numbers from the U.S. due later in the day were also on investors' minds.

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

Among country-specific indexes in Europe, Germany's DAX 30 index rose 0.2% to 7,791.92, while France's CAC 40 index added 0.9% to 3,766.66.

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