Europe's benchmark stock index closed at almost 21-month high on Thursday, boosted by a round of well-received earnings reports from heavyweights such as Royal Dutch Shell PLC and HSBC Holdings PLC.

Stocks finished little changed Thursday, after a choppy session of trade as the energy sector tumbled in sync with a drop in crude oil and House Republicans took a step to begin rolling back Dodd-Frank reforms and Obamacare.

Slumping commodities prices in China sent stock markets there lower Friday, leading declines across the region as investors feared that the nation's crackdown on speculation and borrowing could hurt metals demand.