The European stock markets closed mostly lower in Friday trading as The Stoxx Europe 600 declined 0.24%, Germany's DAX dropped 0.26%, the FTSE was down 0.20%, the Swiss Market Index fell 0.75%, while France's CAC gained 0.21%.

In the UK, retail sales volumes rose an estimated 0.9% in June, after falling 2.8% in May, according to the Office for National Statistics. The ONS said food store sales rose after a decline the previous month as retailers reported a positive effect from warm weather. Compared with Q1, sales volumes rose 0.2% in Q2, the ONS reported.

In Germany, the ifo Business Climate Index edged higher to 88.6 points in July from 88.4 points in June. The index indicated that companies are slightly more satisfied with current business than during the previous month. However, ifo said business expectations were "virtually unchanged," adding that the "German economic recovery remains anemic."

In Italy, the consumer confidence index rose to 97.2 in July from 96.1 in June, according to the National Institute of Statistics, which said all components of the index improved, except for the economic climate index.

And in corporate news, shares of Puma tumbled 14% in Frankfurt after the German sportswear company reported declining Q2 sales, and lowered its 2025 outlook due to anticipated softer sales and US tariff impact.

Telefonica is in exclusive talks to sell its Mexican operations to Beyond One, Reuters reported Friday, citing sources with knowledge of the negotiations. The Spanish telecommunications operator's Mexican business could be worth about 520 million euros ($608.9 million), Reuters said, adding that a deal was not certain. Telefonica did not immediately respond to MT Newswires' request for comment.

Shares of Telefonica were up 0.28% in Madrid.

AstraZeneca said its Trixeo Aerosphere, a treatment for chronic obstructive pulmonary disease in adults, received a positive opinion from a committee of the European Medicines Agency for use with a "next-generation" pressurized inhaler propellant that has near-zero global warming potential.

Shares of the British pharmaceutical giant closed 1% lower in London.

UBS Group has discontinued its multimillion-dollar agreement with BlackRock's (BLK) Aladdin technology platform, which was carried over from Credit Suisse, as the Swiss bank advances the integration of its former competitor's asset management division, Bloomberg reported Thursday, citing unnamed sources.

UBS confirmed the cancellation of the contract to MT Newswires in an email response, while BlackRock declined to comment.

Shares of UBS were down 0.46% in Zurich.