Europe ends the week higher; US on holiday

European shares ended the day on a negative note on Friday, but were higher on the week, as traders digested a better-than-expected U.S. jobs report and the European Central Bank's (ECB) decision to hold fire on Thursday.

Banks fall

The pan-European FTSEurofirst 300 provisionally closed down 0.3 percent on the day at 1,394.46, but rose around 1.7 percent on the week. European indexes fell back slightly after posting stellar gains in Thursday's session, when the widely-watched U.S. non-farm payrolls report came in stronger than expected.

A profit warning by Austria's Erste Bank on Friday pushed banking stocks lower and dragged down broader indexes. Shares in the bank slipped nearly 16 percent as investors dumped the stock.

Austrian rival Raiffeisen Bank was also hit, falling around 4 percent. The European Stoxx banking index came under pressure, and slipped approximately 1.1 percent.The Austrian benchmark index closed unofficially down 2.9 percent.


Split opinions at ECB

With U.S. markets closed on Friday due to the July 4 holiday celebrations, trading volumes were low in Europe, and Asian equities ended the day mixed.

This came after the ECB kept its monetary policy unchanged on Thursday after revealing a host of stimulus measures at its previous meeting.

Read MoreECB surprises with meeting changes, minutes

Central bank watchers did, however, receive an insight into the concerns that still persist for some of its members. ECB policymaker and president of the German Bundesbank, Jens Weidmann, warned later on Thursday that ECB stimulus policies could eventually lead to financial risks such as exorbitant gains in real estate markets.

Read MoreBubble fears mean split opinions at ECB

EasyJet climbs

In stocks news, shares of the U.K.'s easyJet closed just under 1 percent higher after it reported that traffic had risen by 10 percent in June on the year before.

French advertising company JC Decaux saw its shares closed higher by around 0.9 percent after HSBC upgraded its rating to "neutral" from "underweight".

Aveva shares also got a boost of 0.9 percent after Societe Generale started its coverage on the firm with a "buy" rating.

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