This is CNBC's live blog covering European markets.
European stock markets closed mixed on Friday after a key U.S. jobs report showed higher-than-expected new nonfarm payrolls, along with a rise in unemployment.
The regional Stoxx 600 index closed flat, with sectors spread across positive and negative territory.
Oil and gas stocks climbed 1.9% after analysts raised 2023 oil price forecasts for the first time in four months in a Reuters poll released Thursday.
Autos stocks fell 2.6%, however, after a survey from Germany's Ifo Institute flagged a deterioration in sentiment among automakers; almost half said a lack of orders was impeding production.
|.FCHI||CAC 40 Index||7,428.52||-7.47||-0.10%|
|.IBEX||IBEX 35 Idx||10,146.00||-112.10||-1.09%|
It comes after the Stoxx 600 finished August 2.8% lower, according to Eikon data, amid uncertainty over the path of rate hikes, weak European data and pessimism over the reopening of China.
Beijing on Friday gave a boost to global sentiment as the Caixin/S&P global manufacturing purchasing managers' index outperformed analyst expectations and showed factory activity expansion in August.
Traders were examining the U.S. jobs report for signs of a significant economic slowdown that could spur the Federal Reserve to pause rate hikes.
The U.S. added more jobs than expected, but the unemployment rate hit 3.8% — the highest level since February 2022.
Markets have currently priced in an 89% chance of a pause in September, according to CME's FedWatch tool, but the picture from there is murkier. Fed Chair Jerome Powell said last week that the U.S. central bank is prepared to hike further and hold rates in restrictive territory for however long needed to bring inflation to target.
The unemployment rate jumped to 3.8% in August, while average hourly earnings rose less than expected, the U.S. Department of Labor said Friday.
Nonfarm payrolls grew by a seasonally adjusted 187,000 for the month, above the 170,000 expected by economists polled by Dow Jones.
— Samantha Subin
Danish drugmaker Novo Nordisk briefly overtook luxury behemoth LVMH as Europe's most valuable company on Friday.
The company's value has recently climbed on the back of the success of its weight-loss drugs, including Wegovy and Ozempic. It hit $421 billion in morning trading, according to Reuters data — inching past LVMH, which had a market cap of $420.97 billion at the time.
— Hannah Ward-Glenton
"The realiity is that the Japanese economy, given the rate of growth in consumption, given the recovery in the economy, given inflation, has no need for this special, extraordinary monetary policy which separates Japan from the world," David Roche of Independent Strategy tells CNBC.
U.K. house prices fell 5.3% year-on-year in August, marking the weakest annual rate since July 2009, according to a new survey from lender Nationwide.
Prices fell by 0.8% on the previous month.
"The softening is not surprising, given the extent of the rise in borrowing costs in recent months, which has resulted in activity in the housing market running well below pre-pandemic levels," said Robert Gardner, chief economist at Nationwide.
Mortgage approvals have been 20% below pre-pandemic 2019 levels in recent months, Gardner said.
"Nevertheless, a relatively soft landing is still achievable, providing broader economic conditions evolve in line with our (and most other forecasters') expectations," he added.
— Jenni Reid
"The debt is very high, but the problem is not the debt, it's the growth," Valerio De Molli, CEO of the European House - Ambrosetti, tells CNBC.
"The reality is that if the yields go up then you will suffer more than other countries. So we may have a couple of difficult years more than other nations. But if we successfully keep our growth pattern very active, then we can manage all of that.
"And let's not forget the fact that families and corporates are much [less] indebted than the German and the French. So if you look at the entire picture, not only at the public sector, then you have a much more manageable situation."
European stock markets are on course for a cautious open on Friday, according to IG data.
The U.K.'s FTSE 100 is seen opening 4.5 points higher at 7,451, with Germany's DAX up by 4 points to 15,976 and Italy's MIB up 17.5 points to 28,909. However, France's CAC is seen slipping by 3.5 points to 7,329.
— Jenni Reid
August has been a choppy month. September, a historically stormy month, may not be any better.
The pros weigh in on how investors can trade in the month ahead and share stocks to buy.
— Weizhen Tan
The People's Bank of China announced Friday that starting from Sept. 15, it would reduce the foreign exchange reserve requirement ratio for financial institutions to 4%, from 6%.
The cut follows a number of reductions to various interest rates in the last several weeks in an effort to shore up the economy.
The PBOC on Friday set the midpoint of the yuan against the U.S. dollar at 7.1788, a touch stronger than the 7.1811 on Thursday, according to Wind Information.
The offshore-traded yuan weakened past 7.24 yuan versus the greenback, according to Wind.
— Evelyn Cheng
Dividend stocks aren't evergreen, but investing in them over several years can pay off, according to one portfolio manager.
Their underperformance this year presents an opportunity, said Ben Kirby, who is also co-head of investments at Thornburg Investment Management.
He names five stocks to buy.
— Weizhen Tan
For the month, the Nasdaq Composite slumped about 2.2%, while the Nasdaq-100 finished 1.6% lower.
The biggest laggards included software stocks Fortinet and Datadog, down 22.5% and 17.3% on the month, respectively. JD.com shares lost 19.6%, while Lucid Group and PayPal shaved off more than 17% each.
— Samantha Subin