UPDATE 2-European shares rise on oil gains, stimulus hopes

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* FSTE 100 up 0.9%, hits 9-month peak
* EU says post-Brexit trade deal could be clinched this
weekend
* German October industrial orders beat expectations
* Declining jobs growth in U.S. raises fiscal stimulus hopes

(Updates to close)
By Susan Mathew
Dec 4 (Reuters) - Oil stocks lifted European shares on
Friday, with London's blue-chip index hitting nine-month highs,
while disappointing jobs growth in the United States
strengthened hopes for a fiscal stimulus.
London's FTSE 100 rose 0.9% as crude prices gained after a
compromise between OPEC+ members to continue to increase output
slightly from January but continue the bulk of existing supply
curbs. Europe's oil and gas index .SXEP jumped 3.1% O/R
In the United States, data showed the economy added the
fewest number of workers in six months in November, but markets
quickly recovered as the report raised hopes of Congress pushing
through a $908 billion aid package. .N
"Vaccines, the restart of talks about stimulus and the new
(U.S.) administration, and a less confrontational international
background, are still going to be the themes that drive the
market," said Marvin Loh, senior global macro strategist at
State Street Global Markets in Boston.
The pan-European STOXX 600 index .STOXX rose 0.6%, helping
it edge into positive territory for the week for - its fifth
straight week in the black. Disappointing economic data and
Brexit uncertainty had weighed on the index this week.
Progress on a post-Brexit trade deal still remained
uncertain. European Union officials said a deal could finally be
clinched this weekend, but London insisted that negotiations
were still "very difficult". Germany's DAX .GDAXI climbed 0.4%, but ended 0.3% lower on
the week, having underperformed peers for most of the week. The
index has risen about 60% from its March lows compared with
nearly a 46% rise for the STOXX 600 over the same period.
Data on Friday showed German industrial orders rose more
than expected on the month in October, raising hopes the
manufacturing sector in Europe's biggest economy started the
fourth quarter on a solid footing. Basic material stocks .SXPP rose 1.4% and were the biggest
gainers this week, up 6.8% in its best weekly performance in six
months, as copper and iron ore prices soared. MET/L IRONORE/
Sweden's Investment AB Latour LATOb.ST dropped 12.7% and
was the worst performer in the STOXX 600 after its majority
shareholder trimmed its stake in the company. All eyes will be on the European Central Bank meeting on
Thursday when it is expected to keep its policy rate on hold,
but increase bond-buying.