- G20 split on Syrian intervention
- US adds fewer workers than expected
- German industrial production falls
- Ireland may need bailout, says Finance Minister
- Fed to taper stimulus later this year, says Evans
FTSE 100: 0.07%
CAC 40: 0.76%
FTSE MIBL 0.89%
IBEX 35: 0.82%
Stoxx 600: 0.32%
European equities rebounded as the Group of 20 (G20) summit remained divided on a strike in Syria and as the US unemployment rate fell.
US President Barack Obama has been trying to gain support for his plan to launch an attack on President Bashar Hafez al-Assad's government for allegedly using chemical weapons against civilians on August 21st - a claim which Assad denies.
Russia and China, however, warned any action would be illegal unless sanctioned by a United Nations (UN) Security Council resolution.
At G20 press conference, Russian President Vladimir Putin said his country would "assist" Syria if attacked.
US ambassador Samantha Power accused Russia of holding the Security Council hostage by blocking resolutions.
The US and France were the only two nations at the G20 summit to commit to intervention in Syria.
The reluctance of lawmakers to support the move has delayed any possible force until next month after the seven-day opening of general debate at the United Nations General Assembly in New York which starts on September 24th.
Also moving markets on Friday was a US jobs report which showed employers added fewer jobs than expected in August.
The Labor Department said US non-farm payrolls rose by 169,000 last month following a revised 104,000 increase in July. Economists had predicted a jump of 180,000, adding to signs that third-quarter economic growth may have slowed.
Yet the unemployment rate unexpectedly fell to 7.3% in August, the lowest since December 2008, compared to 7.4% in July.
The report is seen as an important indicator for the US Federal Reserve over whether to cut stimulus.
Economists are split on whether the central bank will begin scaling back its $85bn per month in bond purchases at its September 17th-18th policy meeting.
Chicago Fed President Charles Evans on Friday said the central bank would start trimming back stimulus later this year as the economy improves but would likely need to keep interest rates near zero for another two years.
The Fed has previously said it will maintain its low interest rates at least until the unemployment rate falls to 6.5%, as long as the inflation outlook remains below 2.5%.
German industrial output, Ireland bailout
German industrial production fell 1.7% in July from June when it rose a revised 2%, the Economy Ministry in Berlin revealed. Economists had predicted a decline of 0.5% in Europe's largest economy.
German manufacturing output decreased 2.1% in July while construction rose 2.7%, the report also showed.
In France, consumer confidence rose to 84 in August from 82 in July, a touch above market estimates.
Meanwhile, Ireland may need a €10bn bailout to help smooth the transition on its exit from the bailout, according to Irish Finance Minister Michael Noon.
Noon told the Irish Independent that they may need a €10bn (£8.4bn) safety net in the form of a credit line that would only be used in an emergency situation.
EON SE, Sonova
German utility EON SE advanced after a government advisor raised the possibility of limits on subsidies for renewable energy.
Sonova rose after UBS raised its rating on the shares
to buy from neutral, citing growth prospects in its hearing-implants business.
Tullow Oil surged after it was revealed that the Wisting Central exploration well had made the first ever oil discovery in the Hoop-Maud Basin in the Barents Sea offshore Norway.
Ericsson advanced after Credit Suisse raised its rating of the shares to 'outperform' from 'neutral', citing growth in the wireless infrastructure market.
Air France soared as the airline said the number of passengers climbed 3% in August compared to a year ago.
Brent crude rises
Brent crude futures rose $0.877 to $116.280 per barrel on the ICE as the G20 failed to make headway on reaching a consensus on Syria.
The euro fell 0.08% to the 1.3109 US dollar.