European stocks posted sharp declines by Thursday's market close, as a string of corporate earnings triggered negative moves across sectors and bourses. The pan-European Stoxx 600 closed sharply lower, down 1.11 percent provisionally on Thursday, with all sectors and major bourses ending in negative territory.

U.S. stocks closed lower Thursday in their worst session in two weeks with the Dow snapping a seven-day win streak on worries over a possible delay in much-anticipated corporate tax cut. However, main indexes trimmed losses after the House Ways and Committee approved a bill to overhaul the tax code, setting up a vote by the full House.

Global equities remained under selling pressure on Friday with Japan's benchmark index leading declines in Asia, tracking overnight weakness on Wall Street on concerns over the U.S. tax-overhaul plan. Key U.S. stock indexes slid as the U.S. Senate's plan to push through a different tax proposal than what the House of Representatives released last week caused some investors to question the Republicans' ability to get a bill through to the White House.