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Europe pares losses to close mixed after air crash

European shares pared losses to close mixed on Friday with investors cautious after a passenger jetliner was shot down in eastern Ukraine.

Airlines fall

The pan-European FTSEEurofirst 300 provisionally closed down 0.1 percent at 1,362, as traders tried to piece together Thursday's events when a Malaysia Airlines passenger plane carrying 298 people crashed over eastern Ukraine.

U.S. officials have said that the aircraft was hit by a surface-to-air missile. Both the Ukrainian government and pro-Russian rebels fighting in the region have denied responsibility.

U.K.'s FTSE 100 closed up 0.1 percent, Germany's DAX closed 0.5 percent lower, while the French CAC was up 0.4 percent at the close.

Read MoreIMF's Lagarde warns on 'upbeat' Europe markets

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
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DAX
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CAC 40
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IBEX 35
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Airline stocks saw notable declines on Friday with Air France, Ryanair and Lufthansa posting losses of between around 1.3 percent and 2.1 percent.

U.S. stocks rose on Friday, with the S&P 500 rebounding after its largest drop since April 10.

Gaza tensions escalate

Wall Street and global markets also monitored Israel's ground offensive in Gaza, the start of which was announced Thursday.

Oil prices rose after Israeli Prime Minister Benjamin Netanyahu announced the start of the ground campaign. The decision came as a surprise as officials from the Palestinian authority and Israel were believed to be progressing in talks in Egypt aimed at a lasting ceasefire.

Read MoreIsrael launches ground offensive in Gaza

Ericsson soars

In stocks news, Dublin-headquartered pharmaceutical company Shire ended nearly 4 percent higher on news of its £32 billion ($54.7 billion) takeover by U.S. rival AbbVie.

Read MoreShire, AbbVie unveil $54B merger

Electrolux shares closed over 5 percent higher after the appliance maker said its recovery in Europe was on track with second-quarter sales topping expectations.

Shares of Sweden's Ericsson soared around 8 percent after the company's second-quarter results managed to beat market expectations.

Meanwhile, Volvo shares closed more than 5 percent lower after it announced a smaller-than-expected rise in core earnings on Friday.

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