European stocks are seen edging higher on Friday, snapping four days of losses, taking cues from sharp gains on Wall Street overnight and a firm trend across Asia this morning after a report in The Wall Street Journal suggested that the Federal Reserve will act soon to quell investor fears on QE tapering. The bond-buying program would not end "all at once" as the Fed plans to keep short-term interest rates low to ensure the economy keeps moving forward, the report said.
The Federal Open Market Committee meets next week. The minutes of the Fed's May 1 meeting released on May 22 suggested that "a number" of officials wanted the bond buying to cease at the June meeting, although there was disagreement on conditions.
Asian stocks are rebounding from sharp losses the previous day, with Japan's Nikkei index rallying over 3 percent after the minutes of Japan's monetary policy meeting held on May 21 and 22 showed a few members believed there's scope for further policy action if needed. Japan's Finance Minister Taro Aso, meanwhile, played down the recent declines in stock prices, saying they are still much higher than they were last November.
Australia's All Ordinaries index is up 1.9 percent, China's Shanghai Composite is moving up 0.3 percent, Hong Kong's Hang Seng is adding 1.1 percent and South Korea's Kospi is edging up marginally.
Looking ahead, reports on U.K. construction output and Eurozone consumer price inflation are scheduled to be released in the European session. Across the Atlantic, trading could be impacted by reports on producer prices, industrial production and consumer sentiment.
In corporate news, German builder Hochtief announced a 260 million euro share buyback program to be carried out between June 17 and December 13, 2013.
Fashion and lifestyle firm Gerry Weber International AG posted lower first-half net income of 29.3 million euros compared with 31.6 million euros in the year-ago period.
Zodiac Aerospace confirmed its growth objectives after reporting a 14.6 percent rise in sales for the first nine months of its 2012-2013 fiscal year.
EADS chief executive Tom Enders said that he expects "a few hundred" orders for Airbus planes at the Paris Air Show next week.
European stocks turned in a mixed performance on Thursday, as investors weighed positive U.S. economic data against the uncertainties related to the possibility of the Federal Reserve tapering its monthly bond-buying program in coming months. The German DAX slid 0.6 percent and the SMI of Switzerland slipped 0.4 percent, while France's CAC 40 and the U.K.'s FTSE 100 edged up marginally.
U.S. stocks gained ground overnight, with the Dow snapping a three-day losing streak to end above the key 15,000 level, as a pair of upbeat reports on first-time claims for unemployment benefits and retail sales helped investors shrug off sharp losses elsewhere in Asia. The Dow rose 1.2 percent, the tech-heavy Nasdaq gained 1.3 percent and the S&P 500 added 1.5 percent.
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