Europe close: Investors sit on their hands ahead of US jobs data

European markets were in the red as investors waited on the all-important US non-farm payrolls report due out the next day.

That was despite the release of weekly US jobless claims figures on Thursday which some analysts said showed the first sign of a softer jobs picture.

"The back-and-forth week continues, as signs of some weakness in US employment data prompted hopes that perhaps Powell’s hawkishness earlier in the week was misplaced," said IG chief market analyst Chris Beauchamp.

"US markets’ poor performance this year versus Europe has seen some bargain-hunting take place, and notably the Nasdaq 100 is back to where it was before the Fed chairman’s testimony earlier in the week. Most investors of course are now waiting to see how tomorrow’s jobs data plays out, which will set the stage for US inflation next week.”

The pan-European Stoxx index was down 0.22% to 459.98 with nearly all major bourses lower alongside.

France's Cac-40 drifted lower by 0.12% to 7,315.88 while the German Dax was up 0.01% at 15,633.21.

Federal Reserve boss, Jerome Powell, on Wednesday repeated his earlier message that interest rates would have to rise in potentially higher increments to quell inflation, but said this would depend on available data.

In equity news, shares in UK insurer Aviva rose 3% as it announced a £300m share buyback and 35% surge in operating profit.

Germany's LEG Immobilien slumped 10% as the real estate firm suspended its dividend.

Dassault Aviation shares took off after the defence manufacturer reported higher net profit and dividends.

Embattled Swiss bank Credit Suisse fell after it was forced to delay annual results due to a last minute call from the US Securities and Exchange Commission.