European stocks set to rise as investors shrug off IMF warning on growth

European stocks are set to rebound on Friday following a negative close on the back of a call from the International Monetary Fund (IMF) warning that the euro zone economy faces rising risks from trade tensions, Brexit and Italy.

The FTSE 100 is seen around 25 points higher at 7,535, the DAX is expected to climb around 40 points to 12,372 and the CAC 40 looks set to climb by around 15 points to 5,567, according to IG data.

European Markets: FTSE, GDAXI, FCHI, IBEX

In a report published Thursday afternoon, the IMF urged fresh stimulus from the European Central Bank (ECB) to mitigate rising economic dangers, causing stocks to slide into the red. 

Asian shares edged cautiously higher Friday ahead of the release of Chinese trade data for June, as investors look to gauge the impact of Beijing’s ongoing trade war with Washington. 

Investors are also processing mixed messages from the U.S. Federal Reserve after Chairman Jerome Powell kept the focus Thursday on global risks which could trigger a rate cut this month, while colleagues from regional Fed districts painted a rosier picture of continued U.S. growth and a solid business outlook.

Back in Europe, the French Senate gave final approval on Thursday to a tax on big tech companies, evoking ire in Washington and potentially opening the door to a fresh trade row, with the White House alleging it to be an “unfair” tax on U.S. companies.

In corporate news, Chinese tourism group Fosun said on Friday that it is in advanced talks with Thomas Cook Group’s lending banks to inject £750 million ($940 million) into the London-listed travel operator.

Air China has agreed to buy 20 A350-900 jets from Airbus, bolstering the European planemaker’s order book for wide-body aircraft against Boeing

Italian infrastructure group Atlantia said it would explore the purchase of a stake in ailing national airline Alitalia, though it is unlikely to be ready ahead of the government’s deadline of Monday.