European stock markets settled sharply lower on Friday, as the latest U.S. non-farm payrolls report boosted investors' fears that the Federal Reserve could raise interest rates at its meeting later this month.

Europe's leading Blue-chip index, EURO STOXX 50 plunged 89.84 points or 2.82 percent to settle at 3,180.25.

While UK's benchmark index FTSE 100 plunged 151.18 points or 2.44 percent to close at 6,042.92. Germany's benchmark index DAX plunged 279.80 points or 2.71 percent to end at 10,038.04.

Meanwhile, French benchmark index CAC 40 plunged 130.71 points or 2.81 percent to end at 4,523.08.