This is CNBC's live blog covering European markets.

European markets were lower on Friday, as investors monitored corporate earnings and ongoing turbulence in the U.K.'s debt markets.

The pan-European Stoxx 600 index was around 0.2% lower at 12:27 p.m. London time, with sectors and major bourses in mixed territory. London's FTSE 100 shed more than 0.4% during early afternoon deals.

Traders in the region are monitoring developments in the U.K. market, as yields on some gilts — British government bonds — hit their highest levels in decades this week.

After yields on 30-year gilts soared to their highest rates since the late 1990s in recent days, the yield on 10-year gilts hit its highest since the 2008 financial crisis on Thursday. Britain's 10-year gilt yields gained two basis points to trade at 4.832% by 10:57 a.m. in London.

Concerns about the shape of the U.K. economy are mounting, with investors and businesses taking note of new fiscal policies that will see taxes and business costs rise, as well as weak economic data prints out of Britain and sticky inflation.

Overnight in Asia, stocks were mostly lower as investors monitored Japanese data prints and reports that the People's Bank of China would suspend treasury bond purchases.

On Wall Street, stock futures slid on Friday, as investors braced for the release of December nonfarm payrolls data, with economists polled by Reuters anticipating a slowdown in job openings from the previous month.

— CNBC's Lim Hui Jie and Sean Conlon contributed to this European markets story.

Ambu shares rise after guidance update

Ambu's shares climbed to the top of the Stoxx 600 on Friday, a day after the firm raised its full-year guidance.

The Danish medical equipment manufacturer said on Thursday that it now expects organic revenue growth of 11% to 14% for the 2024/25 financial year. It had previously forecast growth of 10% to 13%.

Ambu said the improved outlook was mainly driven by better-than-expected revenue growth in its anesthesia and patient monitoring categories.

Shares of Ambu were up more than 13% at 9:46 a.m. London time.

— Chloe Taylor

Mercedes-Benz reports year-on-year sales decline

Luxury carmaker Mercedes-Benz said in a trading update on Friday that its fourth-quarter sales were up 5% from the previous quarter, but down 2% on an annual basis.

The company said it sold 2.4 million cars overall in 2024, a decline of 4% from the previous year.

Shares of Mercedes-Benz were 3.4% higher by 11 a.m. London time.

— Chloe Taylor

Ubisoft shares slide 8%

Shares of French videogame maker Ubisoft were down 8% by 8:17 a.m. London time.

The selloff came after the company announced it had appointed strategic advisors to pursue its options, following reports last year that the company's backers were considering a buyout.

Ubisoft also announced it was delaying the release of its upcoming "Assassins Creed Shadows" title again, pushing the game's launch back to March 20.

Read the full story here.

— Chloe Taylor

British pound continues decline

The British pound continued its downward turn on Friday, after tumbling to its lowest level against the dollar in over a year a day earlier.

By 7:50 a.m. London time, sterling was trading at around $1.2287, down by 0.1%.

It comes after U.K. government borrowing costs spiked amid concerns over weak economic data and the impact of new tax-raising fiscal policies on businesses and growth.

— Chloe Taylor

European markets: Here are the opening calls

European markets are expected to open in positive territory Thursday.

The U.K.'s FTSE 100 index is expected to open 13 points higher at 8,256, Germany's DAX up 44 points at 20,361, France's CAC up 8 points at 7,454 and Italy's FTSE MIB up 2 points at 35,210, according to data from IG.

Earnings releases include trading statements from M&S, Tesco and Greggs. German trade balance data for November is due to be released Thursday.

— Holly Ellyatt