European shares are expected to be mixed at the start of trade on Friday as investors weigh up gains on Wall Street, helped by lower oil prices, against disappointing after-the-bell results from Merrill Lynch , Google and Microsoft .
Financial spreadbetters expect Britain's FTSE 100 to open 10 to 17 points lower, Germany's DAX to open 3 to 8 points higher and France's CAC-40 to open 5 to 12 points down.
Europe's FTSEurofirst 300 index rose 2.7 percent on Thursday as a solid outlook from mobile phone maker Nokia and surprisingly strong results from U.S. bank JPMorgan spurred a relief rally led by banks.
Wall Street advanced on Thursday, due in part to a $5 drop in oil to below $130 a barrel, but in extended trading Merrill Lynch shares fell 4 percent after the investment bank posted a much bigger-than-expected quarterly loss.
Technology groups Google and Microsoft also missed analysts' estimates.
The Bank of Japan said on Friday that downside risks to the global economy remain high due to shaky financial markets and a stagnating U.S. economy.