VIENNA (dpa-AFX) - The European markets ended Friday's session solidly to the downside. The highly anticipated U.S. employment report showed disappointing job growth, which triggered uncertainty among investors. The Federal Reserve had largely been expected to begin raising interest rates at its September meeting. However, traders are now not so certain after the weak August employment data and the recent plunge in equities due to the slowdown in China.
While the Labor Department released a report on Friday showing much weaker than expected U.S. job growth in the month of August, the unemployment rate still fell to a new seven-year low.
The Labor Department said non-farm payroll employment climbed by 173,000 jobs in August, well below the increase of 220,000 jobs anticipated by economists.
The report also said the unemployment rate edged down to 5.1 percent in August from 5.3 percent in July, while economists had expected the rate to dip to 5.2 percent.
European Central Bank Governing Council member Ewald Nowotny said Thursday euro area inflation may fall back into negative zone in coming months. Further, Nowotny said Eurozone member countries should be given flexibility on budget rules. Nations like Spain should not be forced to cut its budget deficit endangering recovery.
The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 2.75 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 2.42 percent.
The DAX of Germany dropped by 2.71 percent and the CAC 40 of France fell by 2.81 percent. The FTSE of the U.K. declined by 2.44 percent and the SMI of Switzerland finished lower by 1.40 percent.
In Frankfurt, Bayer tumbled by 3.71 percent. The company has decided to proceed with an initial public offering of Covestro AG, the polymers company formerly known as Bayer MaterialScience.
BASF decreased by 2.47 percent. The company has agreed to complete an asset swap with Russian gas pipeline systems operator OAO Gazprom.
E.ON plunged by 5.11 percent and RWE weakened by 5.00 percent.
Deutsche Bank declined by 4.00 percent and Commerzbank lost 3.79 percent.
Lufthansa gained 4.99 percent on reports that Turkish Airlines may strengthen its ties with the carrier.
In Paris, Kering sank by 6.16 percent after Goldman Sachs downgraded its rating on the stock to 'Sell' from 'Neutral.'
Publicis Groupe lost 1.52 percent. Publicis Healthcare, a part of Publicis Groupe, has acquired Tardis Medical, a clinical and medical affairs outsourcing organization and consultancy company.
In London, Next fell by 3.13 percent after Exane BNP Paribas downgraded it to 'Underperform' from 'Neutral.'
Glencore sank by 5.96 percent and Anglo American plunged by 7.79 percent. Antofagasta surrendered 5.36 percent and BHP Billiton tumbled by 5.23 percent. Rio Tinto decreased by 4.53 percent and Fresnillo lost 4.18 percent.
GVC Holdings dropped by 4.64 percent. The company agreed to buy bwin.party digital entertainment in 1.12 billion pounds cash and stock deal. bwin.party shares were modestly down.
Novartis declined by 1.02 percent in Zurich. The company has received EU approval for Farydak capsules, used to treat adult patients with relapsed and/or refractory multiple myeloma.
Roche surrendered 0.92 percent. Genentech, a member of the Roche Group, said that it plans to initiate a phase III trial of ACE910 in patients with Hemophilia A with factor VIII inhibitors by the end of 2015.
Adecco dropped by 2.02 percent. The staffing company appointed John Marshall as Regional Head of UK & Ireland and Stephan Howeg as Chief Marketing & Communications Officer.
UniCredit sank by 4.93 percent in Milan. JPMorgan downgraded its rating on the stock to 'Neutral' from 'Overweight.'
Germany's factory orders declined at the fastest pace in six months in July, data from Destatis revealed Friday. Factory orders dropped 1.4 percent in July from the previous month, which was the biggest fall since January when it slid 2.6 percent.
Economists had forecast orders to fall at a slower pace of 0.6 percent. Orders had increased 1.8 percent in June and decreased 0.3 percent in May.
Germany's construction activity expanded at the slowest pace in seven months in August, data from Markit showed Friday. The seasonally adjusted Purchasing Managers' Index fell to 50.3 in August from 50.6 in July. This was the least marked increase in seven months.
French consumer confidence held steady in August, defying economists' expectations for an increase, figures from the statistical office INSEE showed Friday. The consumer confidence index came in at 93.0 in August, the same reading as in July. Economists had expected the index to rise to 94.0.
New car registrations in the U.K. rose for the forty-second consecutive month in August, figures from the Society of Motor Manufacturers and Traders showed Friday. The total new car registrations climbed notably by 9.6 percent year-over-year in August to 79,060 units. In the corresponding month last year, registrations totaled 72,163 units.
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