European stocks were mostly lower on Friday as a disappointing US labor report along with still-high oil prices and renewed terrorism fears acted as a drag on stocks.
News of bomb attacks in Egypt and France kept investors on edge from the start of the session but the bulk of the losses came after the disappointing US labor report for last month was released.
Data showed US non-farm payrolls grew by 96,000 during last month versus market expectations for a gain of 145,000 jobs. The report, which was widely regarded as a key ingredient in determining the outlook for recovery in Europe's largest export market, caused indexes to trim gains across the region.
The Dow Jones STOXX 600 Index, which tracks Europe's 600 largest listed companies, was down 0.4 percent at 243.26. The Dow Jones Euro STOXX Index, which tracks companies in countries that joined the common currency, was 0.4 percent lower at 230.87.
At the market close, London's FTSE-100 Share Index was unchanged at 4698.9, while in Paris the CAC-40 Index was 0.6 percent lower at 3737.87. Frankfurt's XETRA DAX Index was down 0.7 percent at 4015.54.
David Brown, chief European economist at Bear Stearns, said the number prompted widespread disappointment as markets were hungry for a clear-cut picture of strength.
"Short-term fundamentals are now weighing against stocks and any rally is likely to be held back for another month," he said.
However, he noted that the data weren't weak enough to stop the US Federal Reserve from hiking rates by 25 basis points at its November meeting.
Earnings are likely to dictate market direction next week as the third-quarter reporting season gets underway.
Heavyweight drug stocks rebounding from previous session losses helping to stem market declines on Friday. Europe's largest drug maker, GlaxoSmithKline, gained 2.0 percent to £11.75 after losing 4 percent in the previous session as worries about future drug filings dragged down the entire pharmaceutical sector.
In Frankfurt, E.On was leading gainers, climbing 1.8 percent amid hopes the energy company will continue to raise its dividend in the next few years. Lufthansa was leading decliners in Frankfurt, falling 2.3 percent to US$11.82 after blasts from a car bomb and a suicide bomber tore through a resort hotel in Egypt's Sinai Peninsula.
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