LONDON — European stocks finished higher on Friday, despite an earlier dip, as market participants reacted to stronger-than-expected U.S. jobs data.
The pan-European Stoxx 600 index closed up 0.8%, managing to shake off a brief fall due to the U.S. labor report. Retail stocks led the gains with a rise of 2.2%.
U.S. data showed job growth was stronger than expected in September. Nonfarm payrolls increased by 336,000 for the month, better than the Dow Jones consensus estimate for 170,000, the Labor Department said in a much-anticipated report. The unemployment rate was 3.8%, marginally higher than forecast.
Investors were fearful that if the tight labor market holds up then the Federal Reserve could keep interest rates higher for longer. Stocks on Wall Street were little changed Friday morning as Treasury yields jumped following the data.
— CNBC’s Jeff Cox contributed to this report.