U.S. data showed that the labor market kept pace in December, with 252,000 jobs created in the last month of the year and the unemployment rate dropping to 5.6 percent. Both these indicators came in better than expected.
However, hourly earnings unexpectedly declined by 5 cents an hour.
"We had better-than-expected payrolls gains, a drop in unemployment, but we didn't see any wage growth," David Kelly, chief market strategist at JPMorgan Funds, said.
Wall Street declined on the news, dragging European shares, which were already trading down, still lower.
Shares were also weighed down by concerns about France, as investors tracked events in Paris after the massacre at the office of satirical magazine "Charlie Hebdo." According to media reports, the two suspects who launched an assault on a factory in Northern France where the suspects were believed to be holding a hostage were killed by police on Friday.