GLOBAL MARKETS: European Stocks To Open Up As Asia Recovers

LONDON -- European stocks are expected to open up Friday, after Asian equity markets came off their lows and S&P 500 futures rallied.

Traders were focused on the G20 - on an otherwise quiet day in Europe - after a draft communique said stimulus measures should be maintained until a durable recovery is secured.

Additionally, the group of 20 leading economies was thought to be making good progress towards reaching an agreement to submit bankers' pay to strict guidelines, according to a French official speaking to the press.

Ben Potter, research analyst at IG Markets, said however that there will be a temptation to book more profits ahead of the weekend break.

He called London's FTSE 100 index 23.7 points higher, or up 0.5%, at 5103, Frankfurt's DAX up 17.8, or 0.3%, at 5623 and Paris's CAC up 5.6, or 0.1%, at 3764.

Potter will also be eyeing U.S. durable goods orders data later in the session as the figures could cause volatility. "Any signs of weakness could result in a degree of panic," he said.

Meanwhile, Asian stock markets were lower Friday, dragged down by losses on Wall Street, with commodity plays weaker around the region.

In Japan, a rush of sell orders for Nomura Holdings weighed on financials, after the brokerage announced its second large share offering in six months, reigniting concerns about equity dilution.

Disappointing U.S. housing data, along with sharp falls in metals and energy prices on Thursday, also battered sentiment in Asia.

"Trading cues are all negative today, and the only support for the market will be some short covering before the weekend," said Mizuho Securities market analyst Yukio Takahashi.

Japan's Nikkei 225 was down 2.6% and South Korea's Kospi Composite declined 0.1%. Hong Kong's Hang Seng index was 0.2% lower but the Shanghai Composite came off its lows and was last seen up 0.1%.

U.S. stocks ended in the red on Thursday after mixed economic data which showed a fall in new claims for jobless benefits but elsewhere an unexpected drop in existing homes sales during August.

The Industrial Average fell 0.4% to 9707.4, the Nasdaq Composite index dropped 1.1% to 2107.6 and the Standard & Poor's 500-stock index shed 1% to 1050.8.

"Investors feasted on the housing report," said Jim Paulsen, chief investment strategist at Wells Capital Management. "There has been so much expectation for a correction that traders are quick to sell when any bad news comes out in case this is the beginning of a bigger downturn."

In the currency markets, the yen was stronger on demand from Japanese exporters and hedge funds, while the dollar and the pound were both weaker. The euro traded at $1.4703 at 0630 GMT, up from $1.4666 in late New York business Thursday. The dollar was quoted at Y90.56, down from Y91.27.

Sterling extended its losses and was trading at $1.6023, down from $1.6056 in New York. It dropped sharply on Thursday, battered by suggestions the Bank of England is comfortable with recent lower levels for its currency.

Elsewhere, spot gold was at $997.65 per troy ounce, up $2.65 from the New York close. "With commodities generally coming under pressure in the near term, we cannot rule out a return to $982 before renewed buying interest emerges," said Barclays Capital.

The November Nymex crude oil futures contract was up 50 cents at $66.39 per barrel, after dropping 4.5% to a nine-week low on Thursday due to high U.S. oil inventories and weak demand.

European government bond markets opened barely changed Friday with very little economic news in the euro zone keeping the atmosphere quiet. The December bund futures contract was up 0.01 at 121.13.