European shares were pressured lower during Friday's session by the release of euro zone inflation figures. Consumer prices rose just 0.3 percent year-on-year in August, according to the official Eurostat figures. This was inline with expectations, but below July's 0.4 percent figure and well below the European Central Bank (ECB)'s target of close-to-2 percent.
Market participants said the reading reduced the chances of an immediate announcement of a quantitative easing program by the ECB. Expectations has been running relatively high that the ECB would act at its September 4 meeting, after President Mario Draghi sounded a dovish note at his Jackson Hole speech last Friday.
Meanwhile, unemployment numbers for the bloc remained stable at 11.5 percent, meeting market expectations.
Read MoreEuro zone inflation slides to 0.3%; ECB action eyed
UK supermarkets hit
Retail stocks were the major laggard on Friday, with a profit warning being released by U.K. supermarket chain Tesco.
The company slashed its profit expectations for the year and also cut its dividend, ahead of the early arrival of its new chief executive. Shares closed down around 6.6 percent and U.K. rivals like Sainsbury and WM Morrison were also pressured lower.
Read MoreTesco cuts profit forecast, new CEO to join early
"This really does look like a company that's in full-blown crisis mode," Tony Cross, a market analyst at TrustnetDirect said of Tesco. "However, getting the bad news out the way now ought to the new chief exec better scope to impress the markets in the months and years ahead without being harangued by investors at every turn."