European stock markets closed firmer in a narrow range yesterdayday, with investors waiting for a fresh lead after Wall Street hit its best level since May last week despite disappointing US jobs data.

Dealers said New York’s modest advance on Friday to above 11,000 points and a positive Asian day helped Europe hold its ground on the view the US Federal Reserve will have to ease monetary policy further to keep the economy on track.

In London, the benchmark FTSE 100 index of leading shares gained 0.26 per cent to 5,672.40 points. In Paris, the CAC 40 index edged up 0.14 per cent to 3,768.49 points and in Frankfurt the DAX added 0.28 per cent at 6,309.51 points.

Dealers said the prospects of more US measures to boost the economy pushed Asian stocks ahead with Hong Kong closing at a two-year high.

The US economy lost 95,000 jobs in September as a steep decline in government posts outweighed a rise in private-sector employment.

Dealers said they now expected the Fed to announce more pump-priming, including “quantitative easing” – the purchase of bonds and other assets – to kick-start the US economy.

“It doesn’t seem to matter what economic news comes out in the US because the market is fixated on quantitative easing,” said RBS Morgans investment adviser Danny Dreyfus.

Dealers said the markets were looking ahead to third-quarter earnings this week from major US companies, including Intel, Google, JPMorgan Chase and General Electric, to give them a fresh lead.

In New York, the blue-chip Dow Jones Industrial Average was up a marginal 0.09 per cent at around 1600 GMT while the tech-rich Nasdaq composite index put on 0.30 per cent.

Trade was quiet due to a federal government offices and some banks being closed for the Columbus Day public holiday.

“This week is going to start on a relatively quiet note yet things will soon get busier as the economic and earnings calendars come into focus beginning Tuesday (today),” said Patrick O’Hare of Briefing.com.

Dealers said the Fed meeting in November, or at the latest in December, may produce fresh stimulus measures.

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