Traders are monitoring the situation in Cairo as protesters and regime supporters skirmished for a second day at a central Cairo square while new lawlessness spread around the city. New looting and arson erupted, and gangs of thugs supporting President Hosni Mubarak attacked reporters, foreigners and rights workers while the army rounded up foreign journalists.

Though the market impact of Egypt's turmoil has diminished as the week progressed, it continues to fuel uncertainty.

"Fresh turmoil in Egypt and risk of contagion will unsettle equity markets and maintain upward pressure on oil price," said Neil MacKinnon, global macro strategist at VTB Capital.

In Europe, the FTSE 100 index of leading British shares closed down 0.3 percent at 5,983.34 while Germany's DAX rose 0.1 percent to 7,193.68. The CAC-40 underperformed its peers, ending 0.7 percent lower at 4,036.59.