European stocks gained Friday, with drugmaker shares showing strength, as the Stoxx Europe 600 notched its highest close of the year.

U.S. stocks closed lower Friday, with the Dow industrials swinging to a loss, following reports that a Chinese warship seized an underwater U.S. Navy drone in international waters off the coast of the Philippines. Even as the Dow was curtailed from its advance to the psychologically important 20,000 level, the blue-chip average still nabbed its longest weekly winning streak in more than a year, rising six weeks in a row.

Markets were broadly lower Monday as Japanese stocks were hit by a strengthening yen, and Chinese markets continued to be rattled by the bond selloff. Chinese stocks edged down amid fears that money is exiting China's capital markets, as suggested by a sharp selloff in government bonds that began last week.