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European markets poised to inch higher as investors watch U.S. stimulus, earnings

  • House Speaker Nancy Pelosi signaled that she and Treasury Secretary Steven Mnuchin were "just about there" in discussions over a new coronavirus aid bill.
  • Third-quarter corporate earnings releases before the bell Friday come from Barclays, Renault, Schneider, Daimler and ABB among others.

European markets are heading for a slightly higher open Friday morning as investors monitor signs of progress towards a U.S. stimulus deal and the continuing resurgence of the coronavirus.

Britain's FTSE 100 is seen opening around 17 points higher at 5,802, Germany's DAX is expected to climb by around 34 points to 12,577 and France's CAC 40 is set to gain around 11 points to 4,862, according to IG data.

European stocks look set to track tentative gains on Wall Street after House Speaker Nancy Pelosi indicated that she and Treasury Secretary Steven Mnuchin were "just about there" in discussions over a new coronavirus aid bill. However, Pelosi cooled anticipation of legislation being in place prior to the Nov. 3 election, suggesting it could be "a while" for the bill to be written and signed.

Markets in Asia were mixed overnight, with Hong Kong's Hang Seng index adding 0.6% to lead gains as investors monitored global coronavirus developments and searched for direction.

In a breakthrough on the treatment front, the U.S. Food and Drug Administration on Thursday approved Gilead Sciences' antiviral drug remdesivir as a treatment for Covid-19.

Back in Europe, the U.K. and European Union ramped up daily talks on Thursday as time ticks away for both sides to agree on a post-Brexit trading arrangement.

On the data front, investors will have an eye Friday on flash euro zone PMI (purchasing managers' index) readings for October, expected at 9 a.m. London time, for indications as to the health of the bloc's economic recovery amid a continent-wide uptick in new coronavirus cases.

Third-quarter corporate earnings releases before the bell Friday come from Barclays, Renault, Schneider, Daimler and ABB among others.

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