Investing.com – European stock markets closed lower on Friday, despite US jobs report showing that US economy unexpectedly added more jobs in December compared to the prior month. 

The US jobs report, a key influence in deciding future Federal Reserve rate expectations, showed that nonfarm payrolls increased by 256,000 jobs last month, following a downwardly revised gain of 212,000 in November. The unemployment rate was at 4.1%

At 11:45 ET (16:45 GMT), the in Germany fell 0.5% and the in France 0.8% and in the UK fell 0.8%.

The UK market has underperformed Friday, with soaring gilt yields likely to act as an additional headwind to growth via household remortgaging and weaker investment. 

“The rise in gilt yields reinforces our view that UK growth will disappoint in 2025, with our 0.9% real GDP growth forecast notably below consensus (1.4%), the BoE (1.5%) and the OBR (2%),” Goldman Sachs (NYSE:) said, in a note.

US payrolls expectation

industrial production figures surprised to the upside in November, rising 0.2% on the month, an improvement from the revised lower drop of 0.3% seen the prior month.

That said, most eyes were focused across the pond, with the monthly US employment report expected to show that the U.S. economy added 154,000 in December, while the expected to hold steady at 4.2%.

Labor market data has been volatile in recent months amid disruptions from strikes and hurricanes, but numbers surrounding and have pointed to a reasonably healthy labor force.

With investors barely pricing in two rate cuts from the Federal Reserve this year, the expectation was that the data would remain consistent with a gradually slowing, but still solid labor market.

Back in Europe, the European Central Bank is seen more likely to ease monetary policy this year, with the eurozone economy seen in a much weaker state.

The ECB is widely expected to cut interest rates at least four times in 2025.

AI boosts TSMC’s sales

In corporate news, the tech sector will be in focus Friday after Taiwan Semiconductor Manufacturing (NYSE:), the world’s biggest contract chipmaker, reported a sharp increase in its sales for December, benefiting from robust demand from the fast-growing artificial intelligence industry.

Elsewhere, a report from the Italian financial newspaper Il Sole 24 Ore indicated that the Italian luxury group Prada (OTC:) is considering buying fashion group Versace from Capri Holdings (NYSE:).

Ubisoft Entertainment (EPA:) stock fell over 1.6% after the French videogame maker announced it had appointed strategic advisors to pursue its options, following reports last year that the company’s backers were considering a buyout.

J Sainsbury (LON:) stock fell 4.3% after the retailer reported its third-quarter trading update, and despite strong grocery sales during Christmas, weaker performance in non-grocery segments and margin pressures weighed.

Mercedes Benz (ETR:) stock rose over 3.7% after the German auto giant reported its fourth-quarter sales were up 5% from the previous quarter, but down 2% on an annual basis.

Crude on course for weekly gains

Oil prices rose Friday, on track for a third straight week of gains, with demand receiving a boost from severe winter conditions in parts of the United States and Europe.

By 11:45 ET, the US crude futures () climbed over 3% to $76.16 a barrel, while the contract rose 2.9% to $79.2 a barrel.

Both benchmarks are on course for weekly gains of around 3%.

Many parts of central and eastern United States are expected to experience below-average temperatures over the next few days, while many regions in Europe have also been hit by extreme cold, which is likely to boost demand for heating.