European markets lower after U.S. jobs data; Euro zone bond yields climb to multi-month highs

This is CNBC's live blog covering European markets.

European markets were lower on Friday, as investors reacted to the latest nonfarm payroll data out of the United States.

The pan-European Stoxx 600 index was around 0.77% lower at 3:10 p.m. London time, with most sectors and all major bourses in negative territory.

Utilities and retail stocks led losses, shedding 2.2% and 1.9%, respectively. Autos and oil and gas stocks, meanwhile, were rare outliers, rising in afternoon deals.

Traders in the region are reacting to the December jobs report from the U.S. Bureau of Labor Statistics, which showed on Friday that nonfarm payrolls in the U.S. were up by 256,000 last month — much more than the 155,000 forecasted by economists polled by Dow Jones.

Euro zone government bond yields climbed to fresh multi-month highs following the release. German 10-year bund yields initially jumped seven basis points to hit their highest level since July, before dipping slightly to trade up three basis points to $2.566%.

Investors had also been monitoring developments in the U.K. market on Friday, as yields on some gilts — British government bonds — hit their highest levels in decades this week.

After yields on 30-year gilts soared to their highest rates since the late 1990s earlier in the week, the yield on 10-year gilts hit its highest since the 2008 financial crisis on Thursday.

Concerns about the shape of the U.K. economy are mounting, with investors and businesses taking note of new fiscal policies that will see taxes and business costs rise, as well as weak economic data prints out of Britain and sticky inflation.

Following the release of December's U.S. jobs report, Britain's 10-year gilt yields continued to climb, gaining more than three basis points to trade at 4.848% by 2:40 p.m. in London.

Overnight in Asia, stocks were mostly lower as investors monitored Japanese data prints and reports that the People's Bank of China would suspend treasury bond purchases.

U.S. stocks fell in opening trade, with the Nasdaq leading losses on waning hopes of a near-term Fed rate cut.

— CNBC's Lim Hui Jie and Sean Conlon contributed to this European markets story.

U.S. stocks drop on hot jobs report

U.S. stocks fell in opening trade Friday as Wall Street reacted to December's hotter-than-expected nonfarm payrolls report.

The Nasdaq led losses, shedding 1.65%, on waning hopes of a near-term Fed rate cut, while the Dow and the S&P 500 fell 0.9% and 1.1%, respectively.

Treasury yields jumped, however, with the yield on the 10-year Treasury note spiking to its highest level since late 2023 after the report.

— Karen Gilchrist

U.S. payrolls grew much more than expected in December

U.S. nonfarm payrolls were up by 256,000 in December — much higher than the 155,000 forecast by economists polled by Dow Jones.

Meanwhile, the unemployment rate fell to 4.1%, according to the data published Friday by the Bureau of Labor Statistics.

Read the full story here.

— Chloe Taylor

European assets tumble after U.S. jobs data release

Prices plummeted across asset classes in Europe after data from the U.S. Bureau of Labor Statistics showed job growth was a lot stronger than anticipated in December.

Regional currencies turned downward, with the euro shedding 0.5% against the U.S. dollar and the British pound falling 0.7% against the greenback.

Government bond yields rose, meanwhile, with euro zone 10-year bond yields up six basis points to 2.589% by 1:47 p.m. London time, and the yield on Germany's 10-year bunds also gaining six basis points to trade at 2.588%.

British government bonds, known as gilts — which had already seen yields surge in recent days — also saw yields rise, with 10-year gilts adding seven basis points to trade at 4.877%.

Stocks also moved further into negative territory, with the pan-European Stoxx 600 index down 0.6%.

— Chloe Taylor

Soaring UK borrowing costs not a crisis, former UK business minister says

Former U.K. Business Secretary Vince Cable says surging government borrowing costs do not signal a crisis or "an emergency panic situation."

"Markets have realized we're stuck in this slow-growth trap," Cable told CNBC's "Squawk Box Europe" on Friday.

"We're stuck with relatively high inflation and very slow growth and so the markets are marking the U.K. down relatively speaking," he added.

Cable's comments came shortly after yields on British 10-year and 30-year gilts — U.K. government bonds — reached multi-decade highs.

— Chloe Taylor

French industrial output picks up in November

Industrial output in France rose 0.2% in November from the previous month, data from the country's statistics agency Insee showed on Friday, rebounding after a monthly contraction of 0.3% in October.

On an annual basis, however, French industrial production was down 0.9%, according to Insee's figures.

— Chloe Taylor

Ambu shares rise after guidance update

Ambu's shares climbed to the top of the Stoxx 600 on Friday, a day after the firm raised its full-year guidance.

The Danish medical equipment manufacturer said on Thursday that it now expects organic revenue growth of 11% to 14% for the 2024/25 financial year. It had previously forecast growth of 10% to 13%.

Ambu said the improved outlook was mainly driven by better-than-expected revenue growth in its anesthesia and patient monitoring categories.

Shares of Ambu were up more than 13% at 9:46 a.m. London time.

— Chloe Taylor

Mercedes-Benz reports year-on-year sales decline

Luxury carmaker Mercedes-Benz said in a trading update on Friday that its fourth-quarter sales were up 5% from the previous quarter, but down 2% on an annual basis.

The company said it sold 2.4 million cars overall in 2024, a decline of 4% from the previous year.

Shares of Mercedes-Benz were 3.4% higher by 11 a.m. London time.

— Chloe Taylor

Ubisoft shares slide 8%

Shares of French videogame maker Ubisoft were down 8% by 8:17 a.m. London time.

The selloff came after the company announced it had appointed strategic advisors to pursue its options, following reports last year that the company's backers were considering a buyout.

Ubisoft also announced it was delaying the release of its upcoming "Assassins Creed Shadows" title again, pushing the game's launch back to March 20.

Read the full story here.

— Chloe Taylor

British pound continues decline

The British pound continued its downward turn on Friday, after tumbling to its lowest level against the dollar in over a year a day earlier.

By 7:50 a.m. London time, sterling was trading at around $1.2287, down by 0.1%.

It comes after U.K. government borrowing costs spiked amid concerns over weak economic data and the impact of new tax-raising fiscal policies on businesses and growth.

— Chloe Taylor

European markets: Here are the opening calls

European markets are expected to open in positive territory Thursday.

The U.K.'s FTSE 100 index is expected to open 13 points higher at 8,256, Germany's DAX up 44 points at 20,361, France's CAC up 8 points at 7,454 and Italy's FTSE MIB up 2 points at 35,210, according to data from IG.

Earnings releases include trading statements from M&S, Tesco and Greggs. German trade balance data for November is due to be released Thursday.

— Holly Ellyatt