In the end, European stocks rebounded as bad news for the U.S. economy fueled speculation that the Federal Reserve will delay raising interest rates.
The Stoxx Europe 600 Index added 0.5 percent to 347.86 at the close of trading in London. The equity gauge earlier rose as much as 1.7 percent before payroll data sent shares sliding 0.9 percent. Stocks also reversed gains yesterday after a report showed U.S. manufacturing deteriorated in September. The oscillations highlight nervousness about global growth prospects amid mixed signals from the U.S. and China. European stocks, which have just emerged from the worst quarter in four years, posted their third consecutive weekly loss.