European stocks fell in cautious trade on Friday as U.S. rate jitters along with growing tensions between China and Taiwan sapped investors\' appetite for risk.
In economic releases, the German economy expanded as initially estimated in the first quarter, underpinned by rebounding investment and exports, data from Destatis revealed.
GDP expanded 0.2 percent sequentially in the first quarter, in contrast to the 0.5 percent decrease in the preceding three months.
On a yearly basis, calendar-adjusted GDP shrank 0.2 percent, the same rate as seen in the fourth quarter and in line with the preliminary estimate.
Separately, the confidence among French manufacturers worsened unexpectedly in May and returned to below its long-term average, monthly data from the statistical office INSEE revealed.
The manufacturing sentiment index dropped to 99.0 in May from 100.0 in the previous month. Economists had expected confidence to remain stable at 100.0.
Elsewhere in the U.K., official data showed retail sales declined more than expected in April as a result of poor weather.
The retail sales volume dropped 2.3 percent on a monthly basis, following a revised 0.2 percent drop in March. Economists had forecast a 0.5 percent drop for April.
On a yearly basis, retail sales decreased 2.7 percent, in contrast to the 0.4 percent increase in March.
The pan European STOXX 600 dropped 0.4 percent to 519.34 after finishing marginally higher on Thursday.
The German DAX slipped 0.3 percent, France\'s CAC 40 eased 0.2 percent and the U.K.\'s FTSE 100 was down 0.4 percent.
In corporate news, Spanish construction and energy conglomerate Acciona plummeted 8 percent after a profit warning.
Intertek Group rose about 2 percent. The company backed its full-year expectations after a strong start to the year with 7 percent growth in like-for-like revenue.
Rheinmetall AG fell about 1 percent despite a new order win. The German automotive and arms maker said it has received an order from a NATO customer for the supply of 155mm artillery ammunition.