This was CNBC's live blog covering European financial markets.

European stocks close higher

European stock markets closed narrowly in the green on Friday, with sectors spread between losses and gains.

The Stoxx 600 index finished 0.1% higher after two sessions of declines. Investment manager M&G was the top performer, up 5% following news that Japan's Dai-ichi Life has taken a 15% stake in the business as part of a strategic partnership.

For global investors, it's been yet another week dominated by U.S. President Donald Trump and tariffs.

Among the biggest developments have been a federal trade court's blocking of Trump's universal reciprocal tariff policy late on Wednesday, which itself was then temporarily overturned on Thursday; Trump's accusation that China violated its preliminary trade agreement with the U.S., reigniting trade war fears; and market concerns over sweeping changes to the tax treatment of foreign capital in the U.S.

Items on the agenda next week include figures for euro zone inflation, the European Central Bank's monetary policy meeting, and Europe's largest gathering of the private equity sector at SuperReturn in Berlin. See you then.

— Jenni Reid

Wall Street eyes China trade war

U.S. stocks are off to a rocky start Friday. The S&P 500 is down by around 0.1% and the Nasdaq Composite is 0.3% lower, though the Dow Jones Industrial Average is near flat.

President Donald Trump's accusation that China violated its preliminary trade agreement has brought fears of a prolonged trade war between the world's biggest economies back to the fore.

— Jenni Reid

Stoxx 600 pares gains as U.S.-China trade tensions resurface

U.S. President Donald Trump on Friday said that China had "totally violated" a preliminary trade agreement with America, adding that the alleged wavering from the deal "has to be addressed."

Under the agreement reached earlier this month, both countries said they would pause punitive tariffs on each other's goods for 90 days.

After Trump made the accusation against Beijing, the pan-European Stoxx 600 pared the gains it notched earlier in the Friday session. It was last seen trading 0.4% higher.

— Chloe Taylor

U.S. inflation rate slipped to 2.1% in April, lower than expected, Fed’s preferred gauge shows

The personal consumption expenditures price index was expected to show a 2.2% annual rate in April, according to the Dow Jones consensus forecast.

The personal consumption expenditures price index, the Federal Reserve's key inflation measure, increased just 0.1% for the month, putting the annual inflation rate at 2.1%. The monthly reading was in line with the Dow Jones consensus forecast while the annual level was 0.1 percentage point lower.

Excluding food and energy, the core reading that tends to get even greater focus from Fed policymakers showed readings of 0.1% and 2.5%, against respective estimates of 0.1% and 2.6%.

Read the full story here.

— Jeff Cox

German inflation eases to hotter-than-expected 2.1% in May

Germany's annual inflation hit 2.1% in May approaching the European Central Bank's 2% target but coming in slightly hotter than analyst estimates, preliminary data from statistics office Destatis showed Friday.

The print compares with a 2.2% reading in April and with a Reuters projection of 2%.

The print is harmonized across the euro zone for comparability.

Germany's consumer price index has been closing in on the European Central Bank's 2% target over recent months, in a positive signal amid ongoing uncertainty about the economic outlook for Europe's largest economy.

Read the full story here.

— Sophie Kiderlin

M&G’s stock jumps 5% after Japan deal

London-listed shares of investment manager M&G had popped 5.7% by 12:22 p.m. U.K. time on Friday.

The stock rose after the company announced an "ambitious long-term strategic partnership" with Japanese insurer Dai-ichi Life, under which the latter would acquire a 15% stake in M&G. The deal will also see M&G become Dai-ichi Life's preferred asset management partner in Europe.

M&G said on Friday that over the next five years, the agreement is expected to generate at least $6 billion of new business flows for M&G, and $2 billion of new business flows for Dai-ichi Life.

— Chloe Taylor

Stocks on the move

It's around halfway through the final trading session of the week, and the Stoxx 600 has gained 0.6%.

Oil and gas, healthcare and utilities stocks are leading gains, with the regional indexes representing those sectors each up by around 0.9%.

Looking at major regional bourses, Germany's DAX is seeing the biggest upward swing, with a gain of 0.9%. That puts the index, which hit a record high earlier this week, on track to end its two-day losing streak.

— Chloe Taylor

Why Lagarde’s euro ambition could be a threat to King Dollar

The dollar is the world's most commonly held reserve currency, accounting for almost 60% of global foreign exchange reserves and playing an important role in the trade of assets like oil and gold. It also acts as a peg for currencies including the Hong Kong dollar and the Saudi Riyal.

In second place, trailing far behind the greenback, is the euro, which makes up around 20% of international FX reserves.

This week, European Central Bank President Christine Lagarde said the shifting geopolitical landscape that was driving those moves gave European policymakers an opportunity to raise the euro's status.

Read the full story here.

— Chloe Taylor

The threat of Trump's Section 899 bill is 'enough to spook the markets', says Mizuho strategist

What happens if Section 899 in President Donald Trump's "One Big Beautiful Bill Act" becomes law?

Jordon Rochester, head of fixed income and currency strategy for Europe, the Middle East and Asia at Mizuho, says that foreign investors will likely move assets and investments out of the U.S.

Read more about Section 899 and why the U.S. foreign tax bill is sending jitters across Wall Street.

— Ganesh Rao

Court rulings on tariffs add 'another layer of uncertainty,' European commissioner for economy says

The latest court rulings on the legality of U.S. President Donald Trump's reciprocal tariffs add "another layer of uncertainty," Valdis Dombrovskis, European Union commissioner for economy, told CNBC's Karen Tso on Friday.

"We are already negotiating in [a] quite uncertain environment, with things changing quite rapidly," he said.

On Wednesday the U.S. Court of International Trade had struck down the reciprocal tariffs the Trump administration had slapped on numerous countries in April. The administration appealed the motion and was granted its request to temporarily pause the ruling.

Dombrovskis reiterated that the EU was committed to agreeing to a negotiated deal with the U.S. "because EU-U.S. trade relationship is [the] largest in the world so there is lots at stake economically."

He also described the tariff situation as "urgent," citing a negative economic impact on the EU and the U.S.

— Sophie Kiderlin

European stock markets broadly rise

European stock markets broadly moved higher despite U.S. tariffs being re-imposed by U.S. courts.

The Stoxx Europe 600 index is up 0.1%, the FTSE 100 added 0.4% and Germany's DAX is higher by 0.3%. Meanwhile, France's CAC 40 bucked the trend by declining 0.2% in early trade.

— Ganesh Rao

Positive start for European stock markets

European stock markets are expected to open in positive territory on Friday.

Futures contracts for the Stoxx Europe 600 index point to a 0.1% gain at the open. Meanwhile, the U.K.'s FTSE 100, is set to open 0.2% higher, France's CAC 40 could add 0.1% and Germany's DAX is seen opening flat at the start of the trading day.

In Italy, shares of Metriks AI will trade for the first time on the stock exchange under the ticker MTK. The company provides artificial intelligence and analytical services and services to its clients.

— Ganesh Rao