European shares pared gains in afternoon trade on Friday as persistent concerns about a deep global recession prompted investors to trade cautiously ahead of the weekend.

European stocks slid 3.8 percent on Thursday as oil at $50 whipped energy shares and a fresh 20-percent slide in Citigroup on Wall Street rattled banks.

European stocks fell to a 5-1/2-year closing low on Wednesday, led down by banks and commodities on concerns over a deep recession, while profit worries punctured BASF and AstraZeneca.

European shares ended higher after a choppy session on Tuesday, helped by gains in energy shares and a rally on Wall Street on reassuring results from Hewlett-Packard, but weak financials capped advances.

The White House and congressional Democrats launched a post-election showdown over how to rescue U.S. automakers with millions of jobs, more than a century of iconic brands, and potentially economic confidence, riding on the outcome.

European shares closed lower Monday as mounting concerns about a global recession and Citigroup's plan to slash about 50,000 jobs hurt bank stocks, while miners tracked weaker metals prices.

Top cellphone maker Nokia said the world's mobile phone market would be weaker than it expected in the fourth quarter due to the economic slowdown and was set to fall further in 2009.

European stocks closed higher on Friday as oil shares powered ahead, but the day's rally lost some steam in late trade as poor economic data drove Wall Street lower.

European stocks fell on Thursday, declining for the fifth time in seven sessions and ending at their lowest closing level in two weeks on lingering worries over the global economy and corporate profits.

The British economy will shrink sharply next year and inflation will tumble, the Bank of England predicted on Wednesday, suggesting that it will cut interest rates even below their current half-century low.

European shares slid on Wednesday, led lower by banks and oils that fell on worries of more losses and a darkening economic picture, and Wall Street fretted over changes to a $700 billion financial sector bailout.

European shares closed sharply lower on Tuesday, pressured by banking and commodity stocks, as a poor corporate outlook worldwide and a flurry of grim economic data raised concerns about a deep global recession.

Troubled insurer American International Group posted its largest-ever quarterly loss on Monday, hurt once more by write-downs on assets linked to subprime mortgages and capital losses.

Europe's biggest bank HSBC Holdings said its profit in the third quarter was ahead of a year earlier as growth in Asia helped offset almost $5 billion in bad debts on U.S. home loans and asset write downs.

European shares rose on Monday as commodities surged on a near $600-billion Chinese economic stimulus plan, though stocks ended well off day highs on doubts about whether the plan was enough to avert a sharp global slowdown.