Europe close: Stocks end near session lows after US jobs report

(Sharecast News) - European shares finished Friday in the red and near their session lows as government bond yields headed higher on the back of a stronger-than-expected reading for US non-farm payrolls in December.

The pan-regional Stoxx 600 index was down 0.84% at 511.50, albeit having closed at a four-week high on Thursday, and Germany's Dax was off by 0.50% to 20,214.79.

Spain's Ibex meanwhile was down by 1.50% to 11,720.90.

UK bond prices were a key focus having hit their highest levels in decades this week. The yield on 10-year bonds hit its highest level since the 2008 financial crisis in the previous session but was marginally ahead by 2.7 basis points at 4.84%.

Long-dated 30-year bonds were almost 3bp higher, at 5.41% having hit their highest levels since the late 1990s this week. The pound was down 0.67% against the US dollar at $1.2225.

The bond story was similar across the world with borrowing costs having risen recently amid fears that threatened US tariffs by incoming president Donald Trump would fuel global inflation.

Germany's 10-year government bond yield was up 3bps at 2.573%, its highest since July 10, with the 2-year yield increasing 5bp to 2.291%.

US treasuries had stabilised a tad, although the 10-year yield was up 6bp at 4.75% and on track to close at its highest level in 10 months.

In equity news, shares in Danish medical supplies maker Ambu surged 17% after the company on Thursday lifted its full-year outlook.

Ubisoft shares initially slumped, but by the end of trading had recovered most of their losses, after the French video game publisher on Thursday said it was appointing advisors to review and pursue strategic options.

It followed a report last year that its majority backers were considering a buyout.

UK supermarket chain Sainsbury's fell despite a rise in Christmas sales.