Change European stocks were expected to open lower on Friday following ten hours of talks between European leaders on Thursday and into the early hours of Friday morning, where European leaders agreed to adopt a Franco-German plan for greater fiscal unity within the euro zone.
The FTSE is called 37 points lower, the DAX in Frankfurt is expected to open down by 61 points and the CAC 40 is called lower by 22 points.
French President Nicolas Sarkozy gave a press conference at 5:30am GMT on Friday morning outlining the agreements reached between European leaders on how to tackle the debt crisis in the euro zone.
Sarkozy said all 17 members of the common currency had agreed to Franco-German plans for greater fiscal integration and automatic sanctions for countries that fail to meet tough new budget conditions.
The text of the new agreement and conditions will be drafted for March 2012, the French President said and a possible financial transaction tax proposed by the European Commission will be discussed in January.
Crucially the European Stability Mechanism (ESM) will not have banking capabilities, Sarkozy said.
However, a treaty change for all 27 European Union members was dropped due to British opposition and the threat of a British veto after France and Germany refused to grant concessions sought by Prime Minister David Cameron.
The French President told reporters that other EU members could pursue a fresh intergovernmental deal without Britain and non euro zone Hungary and there would be no need for referendum approval on a treaty change.
David Cameron admitted on Friday morning that there had been tensions between the 'euro-ins' and 'euro-outs' during the ten hour marathon meeting and he insisted that Britain would "never join the euro".
Friday's talks will focus on the legalities of the new fiscal pact between euro zone countries and there is still no detail on exactly what form sanctions will take.
However, an agreement was reached on the size of the ESM which will be capped at 500 billion euros and International Monetary Fund head Christine Lagarde confirmed that the EU had pledged 200 billion euros to the IMF.
The European Banking Authority (EBA) confirmed a Reuters report on Thursday claiming that Europe's banks must find 114.7 billion euros ($152.88 billion) of extra capital, almost eight percent more than the 106.4 billion ($142 billion) estimated in October.
German lender Commerzbank needs to find 5.3 billion euros, while Deutsche Bank requires 3.2 billion euros, the EBA said.
European leaders will resume talks at 9:45am UK time on Friday morning and Croatia will sign an accession treaty to the European Union at 10:30am.
Talks will begin at 11:00am UK time and a press conference with the President of the European Commission Jose Manuel Barroso and the President of the European Council, Herman Van Rompuy is expected to take place around 3:00pm.
Germany's Bundesbank will issue its semi annual economic forecast at 10:00am UK time on Friday and economic data to watch includes UK trade figures for October at 9:30am and third quarter provisional GDP from Greece at 10:00am.