Media playback is unsupported on your device Media caption The BBC spoke to ordinary Chinese investors in Shanghai

Markets in the US and Europe have finished lower, despite a rally on Chinese markets and stronger than expected US jobs figures.

In the US, the Dow Jones closed down 167.65 points at 16,346.45.

London's FTSE 100 fell 0.7%. Germany's Dax index was down 1.31% at 9,849.34 while France's Cac 40 lost 1.59% to 4,333.76.

Shares in Europe had opened higher and returned to positive ground after the US jobs number.

The US economy added 292,000 jobs last month, while the unemployment rate held at a seven-and-a-half year low of 5%.

Earlier, Chinese markets had risen on the first day of trade since a "circuit breaker" mechanism was lifted.

Trading in China was halted twice this week by the circuit breaker, before the authorities suspended the measure.

Image copyright Getty Images Image caption Traders in New York assess market conditions on Friday

The Shanghai Composite rose 2% on Friday, but was still down 10% for the week.

Analysis: Andrew Walker, BBC World Service economics correspondent

The direct financial impact of lower share prices in China is moderate. There is not enough foreign investment in the Chinese market for it to be a major problem. The London consultancy Capital Economics has said foreigners own just 2% of shares.

The issue is about whether the financial turbulence shines a light on wider issues about the economic slowdown in China: is the economy heading for what's called a "hard landing", too sharp a slowdown?

China is now such a big force in the global economy that it would inevitably affect the rest of the world. It is the second largest economy and the second largest importer of both goods and commercial services.

Read more from Andrew.

On Thursday, the suspension of China's stock markets within the first 30 minutes of trading triggered a big sell-off in global markets.

Trading in China was volatile again on Friday, the first day since the suspension of the circuit breaker.

The Chinese central bank also took steps to strengthen the yuan after the currency's weakness was taken as a sign of problems for the economy.

The BBC's Steve Evans in Beijing said the reason for the volatility in China's mainland markets is that "there's a class of share buyer who treats it almost like the dog track".

But these investors cannot fight gravity, and an enormously expensive share market has been brought to heel, he says.

Anne Richards, chief investment officer at Aberdeen Asset Management, told the BBC she was "seeing inexperience" in some parts of the regulation of Chinese markets.

The addition of inexperienced investors did not help, she said. "That's not a good setup... but over time it will improve."

Dr Nikos Paltalidis, a lecturer in Finance at Durham University Business School, added the lack of experience among investors was highlighted by the fact that the first six months of 2015 saw the Chinese stock market soar by about 50%, adding that this rise was "disconnected from economic fundamentals".

"Investors borrowed heavily to speculate on stocks, inflating a short-lived asset bubble."

Analysis: Karishma Vaswani, Asia business correspondent

The People's Bank of China sets the yuan rate every day - its depreciation caused many in the markets to speculate that China is trying export its way out of a slowdown. This Friday, the currency's midpoint was set higher and that brought relief to investors, who see this as a sign that China won't allow the yuan to depreciate too quickly.

How much the yuan is worth shouldn't really have much to do with the stock market. But the direction in which it trades certainly does show whether there's confidence in the economy.

What are China's 'circuit-breakers'?