European stock markets erased losses and closed higher on Thursday after European Central Bank President Mario Draghi hinted the December policy meeting will be key to deciding on further easing measures.

U.S. stocks closed lower Thursday, but off session lows, as a sharp drop in oil and telecommunications shares weighed on investors' sentiment. Investors also grappled with a mixed bag of economic data, earnings results, a steep drop in crude-oil prices, the prospect of a rate increase by the Federal Reserve and tumult wrought by the U.S. presidential election.

Asian stocks were mostly lower on Friday as the dollar climbed to seven-month highs against a basket of currencies and dragged down crude oil prices, cooling investor risk appetite. The greenback was boosted by a fall in the euro after the European Central Bank shot down talk it was contemplating tapering its monetary easing - sending the common currency to its lowest since March.