This is CNBC's live blog covering European markets.

European markets closed slightly higher on Friday as investors in the region reviewed the latest political developments in France.

The pan-European Stoxx 600 provisionally ended up 0.2%, erasing earlier losses. France's CAC 40 index was 1.4% higher, despite ongoing political turmoil in the country.

Investors are still digesting a vote that toppled French Prime Minister Michel Barnier's minority government on Wednesday evening — a motion backed by both left and right-leaning lawmakers after Barnier forced his contested budget through parliament without a vote.

The country's President Emmanuel Macron then gave a defiant speech criticizing politicians for not thinking about "the voters." He insisted he would see out the remainder of his presidency, which will see him stay in office until 2027.

Barnier resigned from his post Thursday morning, but will continue in a caretaker role while Macron selects a replacement.

The euro was last seen 0.1% lower at $1.0571 on Friday following a rise in the previous session.

In Asia, markets were mixed, with traders monitoring political instability in South Korea following President Yoon Suk Yeol's brief imposition of martial law.

Across the Atlantic, U.S. stocks rose after November jobs data came in better-than-expected. The labor report, released on Friday, revealed that nonfarm payrolls increased by 227,000 in November, above the Dow Jones estimate of 214,000 and marking a huge hike from October's gain of just 12,000.

Europe stocks close higher

European stocks closed slightly higher on Friday as investors scrutinized highly anticipated U.S. economic data and ongoing political turmoil in France.

The pan-European Stoxx 600 index provisionally ended up 0.2%, with most sectors in positive territory.

Autos stocks led the gains, up more than 1.8%, while mining stocks fell 0.8%.

— Sam Meredith

Oil prices dip

Oil prices traded lower on Friday as energy market participants closely monitored the prospect of a supply surplus next year.

International benchmark Brent crude futures with February expiry traded 1.2% lower at $71.23 per barrel, while U.S. West Texas Intermediate futures traded off 1.4% at $67.34.

— Sam Meredith

Stocks on the move: Direct Line up 7%; Serco Group down 5%

Shares of British insurer Direct Line surged over 7% on Friday, climbing to the top of the European benchmark following news that it is set to be acquired by its bigger domestic rival Aviva.

U.K. outsourcing company Serco Group, meanwhile, tumbled to the bottom of the Stoxx 600. Shares of the company fell around 5%, notching a fresh 52-week low.

— Sam Meredith

November jobs report beats expectations

The U.S. economy added 227,000 jobs in November, marking a sharp rebound from the previous month. Economist polled by Dow Jones expected an increase of 214,000 jobs for the month. Jobs growth for October was revised to 36,000 from 12,000.

The unemployment rate came in at 4.2% for November, as was expected.

— Fred Imbert

EU chief says divisive Mercosur trade deal ‘in sight’

Germany is still in talks with France about finalizing the EU's trade deal with South America's Mercosur countries, a German government spokesperson said, according to Reuters.

"Our aim was and remains to find an amicable solution in the negotiations, and we are of course in talks with all partners, including France," the spokesperson said in comments cited by the news agency.

The controversial deal between the EU and Latin America's Mercosur bloc — comprising of Brazil, Argentina, Uruguay and Paraguay — would create the world's biggest free trade area, if finalized.

Despite assurances from the EU that removing certain tariffs on trade between the two blocs would benefit European firms, the proposed pact has been a source of contention inside the euro zone.

Last month, French farmers went on strike in opposition to the deal, and the French government has slammed the agreement as "unacceptable," with critics speculating that it could lead to an influx of cheap imports into Europe. Germany's government, however, has been supportive of the agreement.

The German spokesperson's comments come a day after EU Commission chief Ursula von der Leyen said the finish line for the deal was "in sight," as she arrived in Uruguay for talks with regional officials.

— Chloe Taylor

Puig Brands shares tumble after Charlotte Tilbury recall

Shares of Spanish luxury beauty group Puig Brands tumbled to the bottom of the Stoxx 600 on Friday, after its Charlotte Tilbury brand recalled a makeup setting spray.

The company's stock shed 3.6% by 12 p.m. London time, putting its price at the lowest since its IPO in May.

— Chloe Taylor

Some 'really attractive opportunities' in European stocks, abrdn's Ben Ritchie says

A number of European companies appear to represent "really attractive opportunities" for investors over the coming months, according to Ben Ritchie, head of developed markets equities at abrdn.

"I think Europe has been set to outperform for about 20 years, right? And it hasn't really done that," Ritchie told CNBC's "Street Signs Europe" on Friday.

"So, I think as we look into next year, again, I think the prospects are OK but as ever for Europe, it's all about the stocks so I think it is very difficult to make a sort of meta overview argument for Europe," Ritchie said.

"We've spent time talking about France [and] the political uncertainties that are sitting in there, but we do think that at the company level, there remain some really attractive opportunities that have the potential to deliver as good returns as you can find anywhere else in the world," he added.

— Sam Meredith

British house prices hit record high in November, Halifax says

House prices in the U.K. rose 4.8% year-on-year in November, according to data published by British lender Halifax on Friday.

In its House Price Index, the bank said the average property price now stood at £298,083 ($380546), meaning U.K. house prices hit a new record high.

This marked a 1.3% rise from the previous month — the fifth consecutive monthly price increase.

"As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand," Amanda Bryden, head of mortgages at Halifax, said in a news release. "This should underpin further house price growth."

— Chloe Taylor

Airbus shares rise as firm says it delivered 84 planes last month

Airbus delivered 84 planes in November, the French firm said Friday, bringing its 2024 deliveries up to 643 so far. The aircraft were delivered to 42 customers, including airlines Emirates and Icelandair.

The company also recorded 30 orders for last month.

In November 2023, Airbus had reported 64 deliveries and 113 orders.

Shares of Airbus were up 1.84% by 10:32 a.m. London time.

Its update came a day after Airbus announced it would cut 2,000 jobs in its defense and space divisions. Earlier this year, the company trimmed its profit guidance, citing supply chain issues.

— Chloe Taylor

French and German stocks rise

By 9 a.m. London time, French and German stocks were on the rise, leaving their London-listed counterparts behind.

The French CAC 40 had added almost 1%, despite ongoing political uncertainty in the country, while Germany's DAX index was up 0.18%.

Kering and Stellantis led the gains in France, up 4.2% and 3.6% respectively, while the DAX was lifted by Bayer, which added 2.7%, and Volkswagen, which rose by 1.6%.

London's FTSE 100, meanwhile, was 0.18% lower during early morning deals.

— Chloe Taylor

Shares react to Aviva's increased bid for Direct Line

Direct Line shares climbed almost 8% following news that it is set to be acquired by fellow British insurer Aviva.

Direct Lines shares were 7.71% higher at 8:16 a.m. London time, hitting a 52-week high, while Aviva stock rose 0.35%.

Direct Line's board on Friday said it would recommend a formal takeover offer from Aviva to shareholders, after the latter increased its bid for the company by 10%.

The new offer values Direct Line at 275 British pence ($3.51) per share, representing a more-than 73% premium to the closing price on Nov. 27 — the day before news of the initial bid became public.

— Katrina Bishop

Aviva to takeover Direct Line

Direct Line looks set to be acquired by Aviva after the latter increased its bid for its fellow British insurance company.

In a joint statement, the companies said they had reached a preliminary agreement on the terms of a takeover. Direct Line's board said it would recommend the deal to shareholders if Aviva made a formal offer.

The new offer values Direct Line at 275 British pence ($3.51) per share, representing a more-than 73% premium to the closing price on Nov. 27 — the day before news of the initial bid became public. It represents a 10% increase from Aviva's initial offer of 250 pence per share in November, which was rejected.

"Direct Line shareholders would own approximately 12.5% of the issued and to be issued share capital of Aviva," the companies said in a statement.

"The Direct Line Board believes that, in addition to the attractive headline value per share, the combination would provide the opportunity to deliver significant synergies, creating substantial additional value for both sets of shareholders."

— Katrina Bishop

Opening calls

The FTSE 100 is expected to open 8 points lower at 8,341 on Friday morning, while the German DAX index is slated to lose 24 points at the opening, according to IG, bringing it down to 20,334.

Meanwhile, IG is predicting that the CAC 40 will open around 8 points lower at 7,322.

— Chloe Taylor

CNBC Pro: Top picks for 2025: Stocks from Korea, Japan, Hong Kong and Malaysia among Macquarie's favorites — all with more than 50% upside

Macquarie has named several Asian companies as its top picks for 2025, with predicted gains ranging from 50% to over 80% in their share prices.

The selection spans multiple sectors including technology, automotive, defense, and power utilities, reflecting the investment bank's positive view on these industries for the coming year.

CNBC Pro subscribers can read more here.

— Ganesh Rao