The Stoxx Europe 600 Index added 0.5pc to 347.86 at the close of trading in London. The equity gauge earlier rose as much as 1.7pc before payroll data sent shares sliding 0.9pc.

Stocks also reversed gains on Thursday, after a report highlighted a decline in US manufacturing during the month of September. The fluctuations underline the nervousness surrounding global growth prospects amid varied signals from the US and China. European stocks, having just come out of the worst quarter for the last 4 years, posted their third consecutive weekly loss.

By the close in Dublin, the ISEQ Overall Index bucked the trend, closing down 0.68pc or 41.97 points to end the trading week at 6,091.26.

The leaders on the Dublin market included insurance group FBD, which increased 0.8pc to €6.65, while packaging giant Smurfit Kappa rose 0.4pc to €23.45.

On the other side of the board, the laggards included speciality baker Aryzta, which slipped 3pc to €39.11, while building materials group CRH fell 1.3pc to €23.09.

“After the first shock and the contagion concerns, the probable pushing out of the rate hike into 2016 was taken as a relief,” said Christian Gattiker, head of research at Julius Baer Group in Zurich. “Finally those stress factors that put the whole world under pressure — rising US dollar, the prospect of a rate hike — are not happening in 2015. That opens the possibility that things can calm down.”

The US Labour Department report indicated that in September, the US payrolls didn’t rise as much as envisaged, wages stagnated and the unemployment rate stayed the same as people left the workforce, implying the global slowdown and financial market turmoil are rippling through the world’s largest economy.