This is CNBC's live blog covering European markets.

European equity markets edged slightly higher Friday, following sharp drops in the previous session.

The pan-European Stoxx 600 index was up 0.1% by the close, with sectors and bourses posting a mixture of marginal gains and declines. Media stocks logged the biggest losses with a 1.3% drop, while chemicals stocks were up 1.5%.

Nonfarm payrolls data out of the U.S. Friday showed that employment grew less than expected in June, calming what had been an exceptionally strong labor market.

Strong U.S. jobs data on Thursday had pushed 2-year Treasury yields to a 16-year high, after the figures suggested that the Federal Reserve may have further fiscal tightening in the pipeline.

Markets in Asia-Pacific marked a second day of declines Friday, while U.S. stocks wobbled around the flatline on Friday following the lighter-than-expected payrolls data.

Europe ends slightly higher

The pan-European Stoxx 600 index was up 0.1% by the close.

Sectors and bourses posted a mixture of marginal gains and declines.

Media stocks logged the biggest losses with a 1.3% drop, while chemicals stocks were up 1.5%.

U.S. jobs report comes in lighter than expected

The U.S. economy added 209,000 jobs in June, the Labor Department said Friday. Economists polled by Dow Jones expected the report to show a gain of 240,000 jobs. The unemployment rate came in at 3.6%, in line with expectations.

— Fred Imbert, Jeff Cox

OSB Group shares drop 27% on UK mortgage woes

British financial services provider OSB Group, which includes businesses such as Kent Reliance, Precise Mortgages and Prestige Finance, saw its shares tank 27% after it said its net income would drop by up to £180 million ($230 million) as mortgage customers move away from high-rate products.

The specialist mortgage lender said there was a "step change" in customer behavior, with people refinancing mortgages faster than anticipated due to the high interest rate environment in the U.K.

— Hannah Ward-Glenton

Thyssenkrupp Nucera shares higher on German market debut

Shares of clean energy firm Thyssenkrupp Nucera were higher in morning trade, as the company made its Frankfurt debut.

The company was valued at around 2.5 billion euros ($2.7 billion), or 20 euros per share, in its initial public offering. Shares changed hands a little above that at 20.20 euros early in Friday's session.

Nucera is a collaborative venture between Germany industrial company Thyssenkrupp and Italian electrode maker De Nora.

— Hannah Ward-Glenton

CNBC Pro: Morgan Stanley reveals 6 of its top China stocks, including a chipmaker it expects to soar 80%

While the market might be uncertain, Morgan Stanley believes there are still opportunities for investors in China.

The bank pointed to initiatives within companies that could lead to "alpha generating opportunities" and give them a competitive advantage.

Here are six of their picks, five of which are also listed in the U.S.

— Weizhen Tan

All eyes on June payrolls report due Friday

June's payrolls report – the big event on investors' radar in this holiday-shortened week – will be released Friday at 8:30 a.m. ET.

Economists polled by Dow Jones anticipate payrolls climbed by 240,000 last month, which would suggest a cooling from May's gain of 339,000 positions. They are also estimating that the unemployment rate ticked down to 3.6%, compared to May's rate of 3.7%.

Investors hope Friday's report will show signs of wage growth moderating. Economists predict that average hourly earnings climbed by 0.3% in June and rose 4.2% from 12 months prior.

The report takes on a special importance for investors, who have been waiting for signs that the Federal Reserve's last 10 rate hikes have been cooling the economy. The central bank skipped an increase in June, but market participants anticipate a quarter-point boost at the July meeting, according to CME Group's FedWatch Tool.

Read more about what's ahead for June's jobs report here.

-Darla Mercado, Jeff Cox

CNBC Pro: Real or bubble? Goldman Sachs analysts give their verdict on the rally in A.I.-focused stocks

Goldman Sachs analysts have given their verdict on the double or triple-digit rallies in the shares of A.I.-focused stocks.

In addition to naming the stocks exposed to the theme, the Wall Street bank's analysts also said investors were focused on the new technology over its potential to lift personal and professional productivity worldwide.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Asia snapshot: Major indexes follow Wall Street's sell-off on rate hike jitters

Major indexes in the Asia-Pacific tracked Wall Street's losses and fell for a second consecutive day as rate hike fears drove investor sentiment.

Japan's Nikkei 225 marked its fourth straight of declines and traded 0.46% lower, having lost 2.7% for the week.

Australia's S&P/ASX 200 saw a third day of declines and fell 1.48% on Friday afternoon. The index shed nearly 2% this week.

South Korea's Kospi fell 2.14% this week so far and last traded 1.32% lower.

Hong Kong's Hang Seng index lost 3.32% in the past five days of trade and fell 1% on Friday.

Singapore's Straits Times Index also shed more than 2% in the week so far.

— Jihye Lee