European stocks fell Friday, with Italian shares leading the charge lower as concerns over the country's banking system sent lenders lower across the eurozone.

The Stoxx Europe 600 SXXP, -0.81% lost 0.8% to close at 340.14, extending its weekly loss to 1.7%.

U.K. stocks and the British pound declined on Friday after a news report suggested Prime Minister Theresa May is "sympathetic: to starting Brexit talks with the European Union by April at the latest.

The FTSE 100 UKX, -0.15% finished 0.2% lower at 6,858.95, erasing a 0.1% gain from Thursday.

U.S. stocks finished lower Friday as investors worried about whether the Federal Reserve will raise interest rates sooner rather than later.

But the Nasdaq Composite managed to notch its eighth consecutive weekly gain, marking the longest such stretch for the tech-laden index since April 23, 2010, according to Dow Jones data.

Few catalysts and the expiration of August options contracts contributed to fairly lackluster moves during a week that has offered little guidance for investors about the Fed's policy plans, following the release on Wednesday of minutes from the central bank's July meeting.

Asian shares slipped on Monday and the dollar pulled away from last week's lows on expectations that a signal might emerge from a Federal Reserve gathering this week in Jackson Hole, Wyoming that the U.S. central bank is gearing up to hike interest rates.

Global central bankers will join the annual mountain retreat that opens on Thursday, with Fed Chair Janet Yellen due to speak the following day.

On Sunday, Fed Vice Chairman Stanley Fischer gave a generally upbeat assessment of the U.S. economy's current strength in prepared remarks, saying the job market was close to full strength and still improving.