European Shares to Open Lower, Reversing Gains
European shares were set to dip on Friday, reversing gains from the previous session to mirror a weak session in Asian equities, as some worries about the pace of global growth continued to weigh on investor sentiment.
Britain's FTSE 100 was seen down 7 to 11 points, or 0.2 percent lower; Germany's DAX was set to dip 2 to 4 points, or 0.1 percent and France's CAC 40 was seen down 14 to 15 points, or 0.4 percent, according to financial spreadbetters.
Shares halted their losing run by Thursday’s close as investors bought up reduced stocks, particularly ones related to commodities, buoyed by the Greek cabinet’s decision to support a new round of austerity measures.
On Thursday, the FTSE closed up 0.82 percent to 5,856.34 points, the DAX ended up 1.41 percent to 7,159.66 points and the CAC 40 in Paris gained 1.06 percent to close at 3,878.65 points.
It was a similar story in the US where stocks rebounded after a six-day selloff to close higher for the first time this month.
Among the top gainers on the Dow Jones Industrial Average of blue chip firms were DuPont, Chevron and JPMorgan.
In Asia, shares climbed on Friday in response to strong US export data, which tempered fears that the US economy was some way off recovery, but weaker Chinese export data could mean a bounce is shortlived.
The euro stayed at one week lows against the dollar in Asia on Friday, having fallen by a cent as worries about Greek debt persisted, despite a hint by the European Central Bank on Thursday that interest rates could rise in July.
The single currency traded at $1.4535, having earlier fallen to a low around $1.4476.
The euro also lost ground against the yen, slipping to a one week low to just under 116.00 yen, before edging back to 116.55.
In Paris on Friday, judges will discuss the case against finance minister Christine Lagarde in ‘l’affaire Tapie’ and whether to launch a formal inquiry.
Lagarde has been accused of misconduct for approving a 285 million euro ($412 million) legal settlement payment awarded to entrepreneur Bernard Tapie.
Friday is also the deadline for nominations for the role of IMF managing director, after Dominique Strauss Kahn resigned in May.
Frontrunner Lagarde will be attending the annual meeting of the African Development Bank in Lisbon on Friday as she attempts to gain backers for her candidacy.
In Germany, finance minister Wolfgang Schaeuble will address the Bundestag on ‘The Stability of the Euro Zone’ at 8:00 London time.
European Central Bank president Jean Claude Trichet will address a conference in Frankfurt ‘The ECB and its Watchers’ at 7:50 London time.
The EU-Russia Summit will conclude on Friday in Nizhny Novgorod, with Russian president Dmitry Medvedev, EU Council president Herman Van Rompuy and president of the European Commission, Jose Manuel Barroso expected to be in attendance.
Key economic data for Friday includes German final CPI figures at 7:00 London time.
French industrial production data for April will be available from 7:45, followed first quarter GDP figures from Italy at 9:00.
In the UK, producer prices for May will be out at 9:30 London time, followed by GDP estimates at 3:00pm.