LONDON — European markets advanced on Friday to round out a bruising week, as investors reacted to a key U.S. jobs report.

The pan-European Stoxx 600 ended 2% higher by the close of trade. Autos added 3.8% to lead gains as all sectors and major bourses traded in positive territory.

The U.S. economy added 315,000 jobs in August, the Bureau of Labor Statistics reported on Friday. The figure was just below the Dow Jones consensus estimate of 318,000, while the unemployment rate rose to 3.7%, slightly above expectations of 3.5%.

The reading will help cool market fears that a much more buoyant labor market would give the Federal Reserve license to hike interest rates much more aggressively as it tries to rein in inflation.

Global markets have been jittery since Friday after hawkish remarks from Fed Chair Jerome Powell and other central bank officials.

European stocks made a negative start to the new trading month on Thursday, with the European blue chip index closing 1.8% lower, having finished the month of August in the red.

Investors in Europe are faced with additional downward pressures from the growing prospect of recessions in the euro zone and the U.K., with energy shortages arising from Russia's war in Ukraine fueling cost of living crises and soaring inflation.

Shares in Asia-Pacific were mixed on Friday as investors looked ahead to the payrolls report. U.S. stocks rose on the back of the jobs report, after the Dow and S&P snapped four-day losing streaks to finish Thursday's regular session in positive territory.

Stocks open higher after strong August jobs report

Stocks popped at the open on Friday, extending gains from the final minutes of the previous session after the August jobs report came in about as expected.

The Dow Jones Industrial Average jumped about 140 points, or 0.5%, while the S&P 500 and Nasdaq Composite added 0.6% each.

The major averages are still on track to post their third consecutive down week.

— Tanaya Macheel

G-7 finance ministers agree to impose Russian oil price cap

The Group of Seven economic powers agreed on a plan to implement a price capping mechanism on Russian oil exports. The policy is designed to drain the Kremlin's war chest and better protect consumers amid soaring energy prices.

Ahead of the announcement, Russia warned it would stop selling oil to countries that impose price caps on Russian energy exports and said the imposition of a limit on Russian crude would lead to the significant destabilization of the global oil market.

The G-7 is comprised of the U.S., Canada, France, Germany, Italy, the U.K. and Japan.

Read the full story here.

— Sam Meredith

Stocks on the move: Bridgestone up 13%, Sectra down 12%

As of early afternoon trade, shares of British private equity firm Bridgepoint Group were up 13% to lead the Stoxx 600.

At the bottom of the index, Swedish medical technology company Sectra plunged 12% after its quarterly earnings report.

The time is now for a price cap on Russian pipeline gas, EU chief says

European Commission President Ursula von der Leyen says the 27-nation bloc must urgently establish a price cap on Russian pipeline gas flowing to Europe.

"I firmly believe that it is now time for a price cap on Russian pipeline gas to Europe," von der Leyen told reporters, according to Reuters.

It comes shortly after Belgian Energy Minister Tinne Van der Straeten warned that the next five to 10 winters in Europe will be "terrible" unless the EU moved swiftly to impose a price cap on runaway gas prices.

— Sam Meredith

Euro zone producer price growth speeds up again

Industrial producer price growth across the 19-member euro zone rose to an annual 37.9% in July, up from 36% in June and ahead of consensus forecasts for a 35.8% climb, new data from Eurostat showed on Friday.

Producer prices were up 4% month-on-month, a sharp incline from June's 1.3%, and likely signal further increases in consumer price inflation as businesses battle surging energy costs.

- Elliot Smith

Oil rises as G-7 finance chiefs reportedly set to advance Russian oil price cap plan

Oil prices rose further in Asia's afternoon on a report that of G-7 finance ministers are expected to advance a plan to set a price cap on Russian oil.

Reuters reported that an unnamed European G-7 official said "a deal is likely," adding the extent of the specifics that will be publicized remains unclear.

Brent crude futures rose 2.22% to $94.41 a barrel and U.S. West Texas Intermediate crude futures rose 2.47% to $88.75 a barrel.

Prices also climbed earlier in the session ahead of an OPEC+ meeting slated to take place Sept. 5.

—Jihye Lee

Russia's energy influence over Europe may be coming to an end

Russia's energy influence over Europe appears to be coming to an end, energy and political analysts say, potentially alleviating the risk of further supply disruptions.

Europe in recent months has endured a sharp drop in gas exports from Russia, traditionally its largest energy supplier.

A bitter gas dispute between Brussels and Moscow following Russia's invasion of Ukraine has exacerbated the risk of recession and a winter gas shortage. What's more, many fear Russia could soon turn off the taps completely. Russia denies using energy as a weapon.

Asked whether Russia's energy influence over Europe may be coming to an end, Agathe Demarais, global forecasting director at The Economist Intelligence Unit, told CNBC, "Yes. Actually, very much so."

"Europe is heading towards a very difficult winter, probably two years of a very difficult adjustment with a lot of economic pain. But then Europe is essentially going to become more independent with a more diversified mix," Demarais said.

"And what that means is that Russia's energy weapon is going to become moot," she added.

Read the full story here.

— Sam Meredith

Britain’s banks are giving staff one-off crisis payments. But they’re being urged to do much more

Britain's financial sector is being urged to do more to help workers struggling with the cost-of-living crisis, despite a slew of top banking names providing one-off payments to low earners.

Nationwide announced on Aug. 15 a payment to more than 11,000 employees to help with the increasing cost of living, following the likes of Lloyds, Virgin Money and HSBC.

Other financial organizations are offering salary increases, including the NatWest Group, the Co-Operative Bank and Barclays.

Companies need to continue to assess salaries as inflation continues to put the pressure on wages, according to workers' rights group Unite the Union.

"We'll be not that long off from starting to think and talk about what pay rises should be given in the next year, and our claims will definitely be that people should be getting at least inflation," Dominic Hook, Unite's National Officer said.

"We don't want people to have a real-terms cut in pay. They're going to need an increase in pay, no question," he said.

Read the full story here.

- Hannah Ward-Glenton

Stocks on the move: Bridgepoint up 8%, Berkeley Group down 5%

Shares of British private equity firm Bridgepoint gained 8.5% in early deals to lead the Stoxx 600.

British property developer Berkeley Group fell 5% to the bottom of the index after HSBC downgraded the stock to "reduce" from "hold" and cut its target price.

Shell CEO preparing to step down next year - Reuters

Shell CEO Ben van Beurden is preparing to step down next year and the company has shortlisted four potential successors, Reuters reported on Friday, citing two company sources.

The 64-year-old Dutchman has been at the helm of the oil major since January 2014, having joined the company in 1983.

Here are the opening calls

Britain's FTSE 100 is seen around 23 points higher at 7,172, Germany's DAX is expected to add around 18 points to 12,748 and France's CAC 40 is set to gain around 35 points to open at 6,069, according to IG data.

CNBC Pro: Wall Street pros issue warning on stocks. Here's what they say to buy instead

It's time to get out of stocks, some analysts have urged this week.

"We ... now believe the absolute return outlook for equities is outright unattractive in the coming months," Credit Suisse's Global Chief Investment Officer Michael Strobaek said in a note.

Here's what the pros say to buy instead, including the "best asset to own" during this stage of the investment cycle, according to Goldman Sachs.

Pro subscribers can read the story here.

— Weizhen Tan

CNBC Pro: These outperforming stocks could be safe bets right now

Market volatility is on the rise, as fears mount that further interest hike rates to tackle inflation could come at the expense of economic growth. And there could be more pain ahead as the stock market now enters into what has traditionally been a "seasonally weak" period for equities.

But these low-volatility stocks have outperformed the market this year, and could have further upside ahead, according to analysts.

Pro subscribers can read more here.

— Zavier Ong