The pan-European STOXX 600 benchmark was up 0.09 percent, bringing its weekly gain to 1.7 percent.
MSCI's all-country index, was flat at 473.26. It posted a weekly increase to 2.9 percent, which was its strongest such rise in six weeks.
Treasury yields fell on safe-haven buying spurred by stock losses and as data showed U.S. consumer prices fell for the first time in nine months in December.
The yields on benchmark 10-year U.S. Treasury notes fell 3 basis points at 2.702 percent, holding below a two-week peak reached earlier this week.
In currency markets, the dollar rose against the euro, boosted by technical factors after the euro hit key resistance levels.
The euro was down 0.32 percent against the dollar at $1.1463, marking a weekly gain of 0.6 percent.
China's onshore yuan finished the domestic session at 6.7482 per dollar, up 1.8 percent this week in its biggest gain since July 2005 when Beijing abandoned the yuan's peg to the dollar.
In commodities, oil prices declined, reducing their weekly gains tied to hopes that the United States and China may soon resolve their trade dispute.
Brent crude settled down $1.20 or 1.95 percent to $60.48 a barrel, ending the week with a 6 percent gain.
U.S. crude futures settled $1 or 1.90 percent lower at $51.59 a barrel, resulting in a weekly gain of about 8 percent which was the largest increase since June.
Gold edged higher for a fourth straight week of gains on bets the Fed could soon stop raising interest rates, which boost the appeal of the non-yielding metal. Spot gold rose 0.09 percent to $1,287.5 per ounce.
02:30 LOCAL TIME 23:30 GMT