The European stock markets closed lower in Friday trading as The Stoxx Europe 600 was down 0.44%, Germany's DAX 40 declined 0.64%, the FTSE 100 in London fell 0.36%, France's CAC 40 was off 0.61%, and the Swiss Market Index moved 0.24% lower.

In Germany, price-adjusted manufacturing production declined 2.4% in December from November, and was down 3.1% from a year earlier, according to preliminary data from the Federal Statistical Office.

The German FSO also reported that exports increased 2.9% and imports rose 2.1% in December compared with the previous month, which is adjusted for calendar and seasonal effects. Compared with a year earlier, exports and imports grew 3.4% and 4.5% respectively.

In the UK, house prices increased 0.7% in January to a record high 299,138 British pounds ($370,798), according to the Halifax House Price Index. However, on an annual basis, house price growth decelerated to 3.0%, which Halifax said is the slowest rate since July.

In Switzerland, the consumer sentiment index rose 12 points to -29 points in January compared with a year earlier, according to the State Secretariat for Economic Affairs. The economic outlook, past financial situation, financial outlook, and moment to make major purchases were higher than a year earlier.

And in corporate news, Spanish financial services company Banco Santander is not interested in acquiring Portuguese financial services company Novo Banco from private equity firm Lone Star, Bloomberg reported Friday. Santander and Novo Banco did not immediately respond to requests for comment from MT Newswires.

Deutsche Bank is tightening terms under which it gives loans to investors like hedge funds to buy significant risk transfers, or SRTs, Bloomberg reported Friday, quoting a source with knowledge of the matter. Deutsche Bank didn't immediately respond to a request for comment by MT Newswires.

And European automaker Stellantis said it deepened collaboration with Mistral AI to integrate artificial intelligence across multiple areas, from vehicle engineering to in-car experiences.