The European markets were in negative territory on Friday, after German industrial production and exports declined in November suggesting that the economy struggles to achieve a sustainable recovery.
Amid a sharp fall in energy production, German industrial output was down unexpectedly by 0.1 percent in November from October, the first fall in three months, Destatis reported. Economists had forecast a 0.3 percent rise following October's 0.6 percent growth.
Meanwhile, exports decreased at a faster than expected pace while imports rebounded in November from the prior month. Exports fell 2.1 percent month-on-month in November, faster than the 0.5 percent drop in October. Economists had forecast a 1 percent decline.
Separate data released by Insee showed that French industrial and manufacturing production declined for the second straight month in November. Industrial production fell unexpectedly 0.3 percent from October, but the rate of decline slowed from the 0.7 percent fall seen in October. Economists had forecast 0.3 percent rise.
U.K. industrial production fell marginally in November, while manufacturing rebounded from prior month, the Office for National Statistics said. Industrial production dropped unexpectedly 0.1 percent from October when output decreased 0.3 percent. Meanwhile, manufacturing output grew 0.7 percent, offsetting October's 0.7 percent drop.
The Euro Stoxx 50 index of eurozone bluechip stocks was down 1.31 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, was losing 0.89 percent.
The German DAX, the French CAC 40 and the FTSE 100 index of the U.K. were trading modestly lower while Switzerland's SMI was fractionally higher.
In Frankfurt, Lanxess fell 1.2 percent. E.ON and RWE are moderately lower.
Commerzbank and Deutsche Bank declined.
Merck climbed 2.4 percent, after Credit Suisse raised the stock to "Outperform" from "Neutral."
Goldman Sachs raised United Internet to "Conviction Buy List" from "Buy." The stock climbed 4 percent.
In Paris, Veolia Environnement added 2.8 percent. Alcatel Lucent gained 1.8 percent and EDF was advancing 1.6 percent.
Sodexo, which reported first-quarter revenues, fell 1.5 percent.
Lenders Credit Agricole and BNP Paribas were losing 1.4 percent and 1.2 percent, respectively.
In London, housing stocks Taylor Wimpey, Barratt Developments and Persimmon dropped between 5 percent and 4 percent.
Retailers Wm Morrison and J Sainsbury were losing 3.3 percent and 3.1 percent, respectively.
Meanwhile, Ashtead climbed 3.4 percent and Marks & Spencer added 2.2 percent.
Banco Santander, which increased its capital, plunged 10 percent in Madrid.
Roche was notably lower in Zurich. UBS cut the stock to "Neutral" from "Buy."
In the U.S., futures currently point to a cautious open on Wall Street. Stocks rose sharply for a second day on Thursday, with all three major indexes climbing about 1.8 percent each, as oil prices stabilized.
Federal Reserve Bank of Chicago President Charles Evans said the U.S. central bank shouldn't rush to raise interest rates until 2016, given low inflation and mediocre progress in the housing market, which also cheered investors.
The Asian stocks rose for a second day, with commodity-related stocks leading the way, as investors cheered solid gains on Wall Street overnight.
Crude for February delivery fell $0.05 to $48.74 per barrel, while gold gained $3.1 to $1211.6 a troy ounce.
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