European stocks fell at the close of Friday's trading session as mining company shares were hit by lower metals prices, while investors remained cautious after US-Iran negotiations to end the Middle East conflict stalled.
The pan-European Stoxx 600 index closed down 0.2%, but still managed to post a weekly gain of 0.4% after recording record highs earlier in the week.
Risk appetite remained unsettled after US-Iran talks scheduled for Friday in Switzerland were cancelled, amid escalating fighting in Lebanon, adding further uncertainty. However, Israel and the Iranian-backed Hezbollah group later agreed to a ceasefire in Lebanon.
A slight rise in oil prices sent travel and leisure sector shares down 0.9%, while energy sector stocks rose 1.3%.
Mining company shares led losses as commodity prices declined, falling 2.1%. London-listed miners Antofagasta and Pan African Resources were among the hardest-hit companies.
The Stoxx 600 had reached a record level earlier this week, driven by progress in US-Iran talks and the gradual reopening of the Strait of Hormuz, a vital artery for global energy supplies.
Morgan Stanley analysts said in a note: