European stocks gave up their previous gains at the end of the session on Friday, February 2, as markets reacted to a surprisingly strong US jobs report.
The European Stoxx 600 index closed flat, after earlier rising more than 0.7%. The auto sector added 1.1% to lead the gains, while oil and gas stocks fell 1.4%.
The shift came after the US Department of Labor's January jobs report showed that employers added 353,000 jobs, much higher than expectations of 185,000 jobs in a previous survey.
The upside surprise casts doubt on the market's hopes for an imminent interest rate cut by the Federal Reserve.
The European index recorded gains for the second week thanks to a group of positive profits in Europe, although the latest data from the London Stock Exchange Group still indicates a decline in corporate profits on the STOXX 600 index by 8.5% on an annual basis.
On Wednesday, January 28, the Federal Reserve left its policy unchanged, and Chairman Jerome Powell poured cold water on speculation about a possible first rate cut in March.
The Bank of England on Thursday kept interest rates steady with an unexpectedly split vote that highlighted the tough outlook for policymakers as inflation approaches target.
Preliminary euro zone inflation data on Thursday revealed that the annual increase in the headline CPI eased slightly in January, while core numbers fell less than expected and services inflation stabilized.
Corporate earnings were a key driver of individual share price movement in Europe over the week, with the likes of Deutsche Bank, BNP Paribas, Adidas and Volvo Cars making big moves on Thursday.
