UK midcaps at onemonth high
Eyes on French election, US payrolls
Aixtron rallies on strong orders

July 5 Reuters European stocks rose to a more than a oneweek high on Friday after the Labour Party39;s return to power in the UK general election gave investors a sense of calm, while German chip systems manufacturer Aixtron rallied on reporting strong orders.

The panEuropean STOXX 600 index was up 0.4, touching its highest level since June 26.

The UK39;s bluechip FTSE 100 added 0.2 and the domestically oriented FTSE 250 jumped 1.2 to a onemonth high after the Labour Party surged to a landslide victory on Friday, ending 14 years of often tumultuous Conservative government.

British homebuilders outshone other sectors as the Labour manifesto promised to speed up homebuilding by reforming the country39;s planning system.

No matter what the political or policy outcome will be, after all the chaos we had with the Tories over the last couple of years, markets are for now taking the Labour Party39;s return to power as a positive for the British economy, said Carsten Brzeski, economist at ING.

Investors will shift their focus to the U.S. monthly payrolls report later in the day and the second round of French voting on Sunday, which will be crucial in determining the political landscape in the euro zone39;s second largest economy.

Data at 1230 GMT is expected to show U.S. job growth slowed to a stillhealthy pace in June, with the unemployment rate holding steady at 4,…