This is CNBC's live blog covering European markets.

European markets closed lower Friday, rounding off a choppy first week of the new year, as investors reacted to euro zone inflation data and December's U.S. jobs report.

The Stoxx 600 ended 0.3% lower as most sectors and major bourses fell into negative territory. Retail stocks fell 1.1% to lead losses after data showed German retail sales dropped far more than expected in November. Banking stocks, meanwhile, were higher, up 0.5%.

The pan-European index gained 0.7% on Thursday, following two negative sessions. Stock markets in the U.S. and Asia-Pacific have had a mostly negative start to 2024, with the major Wall Street averages on course to snap nine-week winning runs.

Euro zone inflation climbed to an annual 2.9% in December from 2.4% the previous month, initial flash estimates showed on Friday, though came in just below a 3% forecast from a Reuters poll of economists.

In the U.S., December's jobs report showed employers added 216,000 jobs for the month, vastly outstripping a Dow Jones consensus estimate of 170,000 while the unemployment rate was unchanged at 3.7%.

Investors will be assessing whether the data indicates enough cooling in the economy for imminent interest rate cuts.

U.S. stocks move higher

U.S. stocks moved slightly higher Friday, bouncing back from an early-2024 sell-off. However, they remained on course for their first losing week in 10.

The Dow Jones Industrial Average was 0.3% higher in morning trade, while the S&P 500 rose 0.6%. The tech-heavy Nasdaq also jumped 0.7%, recovering somewhat from a week of losses.

— Karen Gilchrist

U.S. payrolls increased by 216,000 in December, well above expectations

December's U.S. jobs report showed employers added 216,000 jobs for the month, vastly outstripping a Dow Jones consensus estimate of 170,000, while the unemployment rate was unchanged at 3.7%.

The data from the Labor Department suggests continued robustness in the U.S. labor market despite mounting economic challenges, posing a potential headache for markets that are banking on a slew of interest rate cuts in 2024.

Andrew Patterson, senior international economist at Vanguard, said Friday's jobs report "speaks to the bumpy road ahead for the Fed's journey back to 2% inflation."

"Strong headline job growth and wage growth above 4% combined with Fed communications, including the minutes, emphasizing the need to remain higher for longer decrease the likelihood of preemptive rate cuts," Patterson said.

"The decision of when to first cut policy rates remains one for the second half of the year in our view."

- Elliot Smith

Biggest movers: Remy Cointreau down 12%, Pernod Ricard down 4% on China probe

Shares of French spirits giant Remy Cointreau plunged 12% by early afternoon after the Chinese government announced an "anti-dumping" investigation into the industry.

This will set out to determine whether spirits are being sold below fair market value in the country, which may result in tariffs on imports.

"Anti-dumping is an import duty charged in addition to normal customs duty and can be levied when a foreign company sells an item significantly below their normal price," explained Russ Mould, investment director at British investment platform AJ Bell.

"This represents yet another point of tension between China and the West and suggests geopolitical developments could be a key worry point for markets in 2024."

Pernod Ricard shares also dropped 4.8%.

At the top of the Stoxx 600, Danish biotech Zealand Pharma climbed 5%.

- Elliot Smith

Euro zone inflation rebounds in December, fueling rate-cut debates

Euro zone inflation climbed to an annual 2.9% in December from 2.4% the previous month, initial flash estimates showed on Friday, though came in just below a 3% forecast from a Reuters poll of economists.

Food, alcohol and tobacco made the largest upward contribution to prices, while the fall in energy prices moderated, down 6.7% year-on-year in December versus an 11.5% fall in November.

Friday's data will add to the debate over the trajectory of the European Central Bank's policymaking, with markets expecting rate cuts to begin before the summer.

"There was a short-term impact from a pick-up in energy prices, but that should fall away, and the ECB will be happy with the overall trend," said Neil Birrell, chief investment officer at Premier Miton Investors.

"While markets probably got a bit ahead of themselves in their expectations for rate cuts, the prospect of sizable cuts in 2024 remains in place in the face of a slowing economy."

Read the full story here.

- Elliot Smith

German retail sales down more than expected

Retail sales in Germany fell 2.5% month on month in November, according to the national statistics agency, plunging well below the 0.1% dip forecast in a Reuters poll of analysts.

Overall, sales were estimated to have been 3.1% lower in 2023 than in 2022.

However, statistics agency Destatis noted that the pandemic had fueled a run of strong growth, and sales were still 1.6% above their 2019 level.

— Jenni Reid

U.K. house prices rose in 2023, lender Halifax says

U.K. house prices defied expectations by rising in 2023, according to figures from the country's biggest mortgage lender Halifax.

Growth was concentrated in the last three months of the year, but saw house prices end 2023 1.7% higher than December 2022.

Analysts had forecast a fall of up to 10% in the market in 2023.

The rise is "likely being driven by a shortage of properties on the market, rather than the strength of buyer demand," said Kim Kinnaird, director at Halifax Mortgages.

The recent fall in U.K. mortgage rates may help boost buyer confidence in the months ahead, Kinnaird said.

However, Halifax still says house prices could fall between 2% and 4% this year.

— Jenni Reid

Europe stocks to open lower

European stocks are set to open lower Thursday.

IG data sees France's CAC 40 down 43.8 points at 7,412, Germany's DAX down 103 points at 16,527, and the U.K.'s FTSE 100 lower by 48 points at 7,682.

— Jenni Reid

CNBC Pro: Look beyond valuation — this fund manager uses a unique strategy for returns that beat inflation

Hot inflation has been a global scourge in the past few years, and though it has cooled recently, consumers may not be out of the woods.

What's happening at the moment may add to fears that inflation isn't going away: The crisis in the Red Sea is pushing ocean freight rates higher, triggering warnings of higher prices caused by supply chain pressures.

One fund has a target of giving investors a return that is greater than the U.K. consumer price index plus another 3% — after fees and over any five-year period.

This fund makes allocations using a three-part strategy and focuses on one metric that's not valuation.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Oil prices fall as U.S. fuel inventory build up overshadows Mideast tensions

Oil prices fell on Thursday as a huge U.S. fuel inventory buildup overshadowed worries about supply disruptions from mounting tensions in the Middle East.

The West Texas Intermediate contract for February lost 51 cents, or .7%, to settle at $72.19 a barrel. The Brent contract for March shed 66 cents, or .84%, to settle at $77.59 a barrel.

U.S. gasoline stocks increased by 10.9 million barrels to 237 million barrels total for the week ending Dec. 29, according to data from the Energy Information Agency. Motor fuel supplied to the market, an indicator of demand, fell by 1.2 million barrels per day to nearly 8 million barrels per day total.

The U.S. inventory build shifted focus away from mounting tensions in the Middle East. Crude prices rose more than 2% on Wednesday as militant attacks disrupt shipping in the Red Sea and a Libyan oilfield was shutdown due to protests.

— Spencer Kimball

CNBC Pro: Ritholtz’s Josh Brown reveals stocks he says are ‘twice as cheap’ as the S&P 500

Josh Brown of Ritholtz Wealth Management has named the stocks he thinks is undervalued compared to the broader U.S. stock market.

These stocks presents an opportunity for investors in 2024, according to Brown, as they are trading at a 34% discount relative to the S&P 500, compared to an average discount of 16% over the past 20 years.

CNBC Pro subscribers can read more here.

— Ganesh Rao

ADP report shows stronger than expected job growth in December

Private payroll growth topped estimates for growth in December, according to an ADP report Thursday showing a still-vibrant labor market.

Companies added 164,000 for the month, better than the downwardly revised 101,000 for December and the 130,000 estimate from Dow Jones. Leisure and hospitality led the way with 59,000 new jobs while construction added 24,000. Small businesses were the biggest job creators, as those with fewer than 50 employees added 74,000.

The reports comes a day ahead of the Labor Department's nonfarm payrolls release, which is expected to show an increase of 170,000.

—Jeff Cox