European shares are expected to open up on Friday, boosted by heavyweight oil stocks as crude oil breaks above $140 a barrel, while a media report of a potential U.S. government rescue plan for the two top home financing groups offers further support to the broader market.
A report in the New York Times newspaper citing sources briefed about the plan said the U.S. government was considering a plan to take over the country's two largest mortgage lenders-- Fannie Mae and Freddie Mac -- and place them in a conservatorship if their problems worsen.
This pushed up the dollar and Asian equities, while hitting Treasury prices.
Financial spreadbetters expect Britain's FTSE 100 to gain 14 to 36 points; Germany's DAX to rise 10 to 30 points and France's CAC-40 to open 15 to 27 points higher, after falling sharply on Thursday.
"Obviously with Wall Street ending as it did, slightly stronger towards the end of the week, that's getting a bit of strength into the market. Regarding the FTSE, crude approaching $142 again is going to boost the heavyweight oils," said Matt Buckland, a trader at CMC Markets.
"(Freddie Mac and Fannie Mae) getting taken over by the government, that's given some strength to the market," he said, adding: "The thing about that is it's going to give a boost to Freddie Mac and Fannie Mae, but you wonder if it's almost like a bigger version of Northern Rock."