European stock markets settled lower on Friday, after sharp falls in China's stock markets weighed on sentiment, but losses were muted as the European Central Bank's (ECB) policy meeting next week remained in focus.

Europe's leading Blue-chip index, EURO STOXX 50 lost 9.63 points or 0.28 percent to settle at 3,488.99. UK's benchmark index FTSE 100 fell 17.98 points or 0.28 percent to close at 6,375.15.

Meanwhile, Germany's benchmark index DAX declined 27.01 points or 0.24 percent to end at 11,293.76. French benchmark index CAC 40 lost 15.88 points or 0.32 percent to end at 4,930.14.