Europe Stocks Seen Mixed; Eyes on Greece, US Jobs

European stocks were expected to open mixed on Friday after hitting a one-week closing low on Thursday amid fresh concerns over the pace of the US recovery.

A broker works as his control screen shows a graph of activity on the French Stock Exchange in Paris.
A broker works as his control screen shows a graph of activity on the French Stock Exchange in Paris.

Financial spreadbetters expected Britain’s FTSE 100 to open 13 points higher, Germany’s DAX to open 1 point lower and the CAC in France to be up by 12 points.

Asian stocks made modest gains on Friday and in the US stocks closed mixed on Thursday ahead of the release of US non-farm payroll data and in response to further concerns over Greek debt.

The US jobs data will be released at 8:30 am New York time (1:30 pm London time) and some analysts said it may signal a slowing in the US economy.

There was confusion over the outcome of talks on a new three-year bailout program for Greece, with Reuters quoting a source close to the negotiations that senior euro zone officials meeting in Vienna agreed in principle on the program; but an EU official denied to CNBC that an agreement had been reached, saying EU finance ministers haven't sign off on any deal.

In London, the FTSE fell 1.36 percent Thursday to 5,847.92 and Germany’s DAX closed 1.99 percent lower at 7074.12 points.

The FTSE Eurofirst 300 index of top European shares finished 1.33 percent down at 1115.92 – the lowest since May 23.

The euro hit a one-month high against the dollar on Friday, with investors concerned that forthcoming data could give them more reason to brace for a protracted soft patch in the US economic recovery and further weakening of the dollar.

Credit rating agency Moody’s also said late on Thursday that there is a very small risk of a temporary default by the United States if the statutory debt limit is not raised in the coming weeks.

Moody’s said failure to raise the debt limit could place the US’ AAA sovereign credit rating on review for a possible downgrade.

In politics, German Chancellor Angela Merkel will meet with leaders of the Bundeslander Friday to discuss Germany’s exit from nuclear energy.

In Europe there is a raft of service sector data for May with Ireland releasing theirs at 07:00 London time, followed by Spain at 8:15, Italy at 08:45, France at 8:50, Germany at 08:55 and the European Union 9:00.

In Britain, service sector PMI will be released at 9:30.