European shares are set to open higher Friday as investors monitor trade talks between the U.S. and China and wait for key economic data.

The FTSE 100 is seen up by 26 points at 7,529; the DAX is seen higher by 58 points at 12,741; and the CAC 40 is expected to start up by 29 points at 5,517; according to IG.

Asian markets were subdued as trade talks between China and the U.S. carried on for their second and likely final day. U.S. Treasury Secretary Steven Mnuchin said on Friday that the discussions have been very good. Markets fear that there could be a trade war between both countries if an agreement isn’t reached.

Meanwhile, investors will follow further earnings and key economic data, with nonfarm payrolls due in the United States at about 1:30 p.m. London time. The metric is particularly important to assess the health of the U.S. economy and project whether the Federal Reserve is going to increase rates.

Before that, there will be unemployment numbers out in Spain at 8 a.m. London time and services PMIs in Germany at 08:55 a.m. London time. On Thursday, European bond yields fell across the region following disappointing inflation numbers.

In the corporate world, BNP Paribas, Societe Generale, BMW, Repsol and HSBC are among the companies reporting Friday.

In the U.S., authorities accused former Volkswagen chief Martin Winterkorn of conspiring to cover up the German automaker’s diesel emissions cheating, Reuters reported. In the U.K., BT is set to announce thousands of job cuts next week, according to the Financial Times. And in Italy, Telecom Italia shareholders are due to hold a meeting to vote on the appointment of the board of directors.

Source: cnbc
European markets seen higher ahead of key economic data