Looking at sectors across the region, banks were worst performers on Friday, down around 2.6 percent with a number of Italian banks dropping to the bottom of the STOXX 600. Lenders including Unicredit, Banco BPM and Intesa Sanpaolo all fell more than 7 percent.
Italy's government set a budget deficit target at 2.4 percent of gross domestic product (GDP) over the course of 2019 to 2021. This came following media reports on the same day which suggested that Italy's populist administration were pressing the country's finance minister to resign if he didn't deliver the pledges made during the campaign. A spokesperson for the finance minister however told CNBC the rumors were "fake news."
Looking at individual stocks, Saab soared more than 8 percent after news emerged that Boeing had secured a $9.2 billion to build Air Force's next trainer aircraft — and it was partnering with the Swedish manufacturer to do it.
Sticking with strong gainers, shares of Dutch semiconductor company ASM International shot up by over 2.6 percent after Bloomberg reported that Chinese firm TCL was mulling a bid for its remaining stake in its listed Asian affiliate.
Meanwhile, RSA Insurance published a trading update Friday, stating that it had seen a "strong" third quarter in its international businesses, however it's U.K. and London market business issued an underwriting loss, which they said was "disappointing" and had negatively impacted overall results. Shares slumped toward the bottom of the benchmark, dropping over 9 percent.
Ryanair expected to see staff members strike across six countries in Europe on Friday. Shares of the airline closed under pressure.
Stateside, the Dow and S&P 500 bounced back to trade slightly higher on Friday, boosted by gains in energy and healthcare companies.