Capital Spreads said that while Iraq was weighing on sentiment, markets were still propped up by loose monetary policy around the globe.
"Investors are wagering on continued relaxed monetary policy in Europe and the U.S. for a while yet," analysts wrote in a research note on Friday.
No economic data is due during the day and no major companies are set to report quarterly earnings. Stock and index derivatives, like options and futures, are due to expire on Friday in a process known as quadruple witching. This is likely to increase volatility.
In stock news, traders will watch AbbVie, after FTSE 100-listed Shire said it had rejected a takeover bid from the U.S. pharmaceutical giant.
Read MoreWhy AbbVie's UK bid may get easier ride than Pfizer
"Shire's rare diseases business is one of the hottest assets in biopharmaceuticals," said Panmure Gordon analyst Savvas Neophytou in a research note on Friday.
"AbbVie may be able to increase its offer to more than £50, which we believe will be required to make this deal happen."
In addition, General Electric will be in focus after Siemens and Mitsubishi Heavy Industries raised their competing offer for Alstom's energy businesses.
Read MoreSiemens and Mitsubishi sweeten Alstom bid
Plus, shares of American Apparel will be eyed after Dov Charney was fired by the company's board after unspecified allegations of misconduct.