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European Shares Seen Up As US-China Trade Tensions Ease

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European stocks may open higher on Friday as hopes for a thaw in the U.S. China trade conflict helped improve investors' appetite for riskier assets.

Trade tensions eased somewhat after the Wall Street Journal said the U.S. is considering lifting tariffs on Chinese goods in an effort to calm markets and give Beijing an incentive to make deeper concessions.

Asian stocks remain broadly higher on hopes for progress in U.S.-China trade talks while the dollar held firm against the yen in reaction to strong U.S. economic data. Oil also edged higher after a report showed OPEC production fell sharply last month.

Overnight, U.S. stocks rose on optimism that the U.S and China will try to avoid a prolonged trade conflict. The Dow and the tech-heavy Nasdaq Composite gained around 0.7 percent, while the S&P 500 added 0.8 percent.

Chinese Vice Premier Liu He will travel to Washington on Jan. 30 and 31 to hold the latest round of trade talks after positive negotiations in Beijing last week.

Meanwhile amid clear indications that the Chinese economy is losing momentum, investors now await China's fourth-quarter GDP data, due on Monday for further direction.

After the U.S. closing bell, American Express reported quarterly earnings that missed Wall Street expectations while Netflix topped Q4 subscriber and profit estimates.

European markets ended mostly lower on Thursday, with a profit warning by Societe Generale, Brrexit uncertainty and worries about the likely impact of the partial government shutdown in the U.S. keeping investors worried.

The pan-European Stoxx 600 ended marginally higher. The German DAX slipped 0.1 percent, France's CAC 40 index dropped 0.3 percent and the U.K.'s FTSE 100 declined 0.4 percent.

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