European Shares To Open Higher On US-China Trade Talk Optimism

(RTTNews) - European stocks are likely to open higher on Friday as investors react to easing trade tensions and mixed earnings from U.S heavyweights.

A spokesperson for China's ministry of commerce announced today that Beijing was assessing the possibility of tariff negotiations with the United States.

The statement comes a day after a Weibo account linked to Chinese state media said the U.S. had been seeking to initiate discussions.

On the earnings front, Microsoft and Meta Platforms drove Wall Street higher overnight after posting better-than-expected results in the first quarter of the year.

After the closing bell, Apple has warned of increased costs as a result of tariffs while Amazon said it is bracing for a tougher business climate.

Energy giants Chevron and Exxon Mobil will be reporting their quarterly results before the U.S. opening bell later in the day.

In economic releases, the U.S. Labour Department's monthly jobs report is likely to be in the spotlight today.

Closer home, flash inflation, unemployment and final factory Purchasing Managers' survey results from the euro area are due later in the day, headlining a busy day for the European economic news.

Oil prices were up nearly 1 percent in Asian trading after U.S. President Donald Trump threatened sanctions against buyers of Iranian oil.

The dollar eased, helping gold prices recover to trade above $3.250 per ounce. The yen also remained depressed as dovish comments from the Bank of Japan this week poured cold water on rate hike prospects.

U.S. stocks rose overnight as upbeat earnings news from software giant Microsoft and Facebook parent Meta Platforms helped ease concerns about artificial intelligence (AI) spending.

Economic data on the session painted a sluggish picture, with U.S. manufacturing contracting for a second straight month in April and initial unemployment claims posting an unexpected increase last week.

That followed Wednesday's data showing the U.S. economy contracted for the first time in three years in the last quarter and hiring by private-sector employers slowed to the weakest pace in nine months in April.

The tech-heavy Nasdaq Composite surged 1.5 percent to reach its best closing level in over a month, while the S&P 500 added 0.6 percent and the Dow edged up by 0.2 percent.

Most European markets were closed on Thursday for May Day. The U.K.'s FTSE 100 showed a lack of direction before finishing marginally higher.