A look at the day ahead in European and global markets from Rocky Swift

As U.S. President Donald Trump's trade war with China devolves into a "he said, Xi said" back-and-forth over whether the countries are actually talking, the markets for now are shifting their attention to some upbeat corporate results.

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Futures trade pointed to a higher open on European stock markets, adding to a second straight weekly gain as the shock wears off from Trump's April 2 "Liberation Day" tariff announcement. The whiplash effects are likely far from over but markets seem to be accepting them as the new normal.

Google parent Alphabet (GOOGL.O) , opens new tab and packaged snacks maker Nestle beat sales estimates while pharmaceuticals heavyweight Merck posted higher profits.

Shares in Asia latched onto the positive news, with Japan's Nikkei (.N225) , opens new tab rising more than 2% and MSCI's broad index of ex-Japan shares (.MIAPJ0000PUS) , opens new tab climbing more than 1%.

The U.S. dollar , which is trading more like a risk asset in the new upside-down world, rose sharply against the Swiss franc and euro in Asia trading. U.S. stock futures are signalling a continued rally.

With the bulk of Trump's sweeping tariffs suspended for 90 days, expectations have mounted that major trading partners will cut trade deals one-by-one with the U.S., but none have yet emerged. Negotiations between Japan and the U.S. have yet to produce anything concrete.

Trump said on Thursday that trade talks are happening with China, which a Chinese Foreign Ministry spokesperson later rejected as "false news".

China's government, however, is considering suspending its 125% tariff on some U.S. imports, Bloomberg News reported on Thursday. Chinese authorities may remove the additional levies for medical equipment and some industrial chemicals including ethane, the report said, citing people familiar with the matter.

On the earnings front, forecasts have been cut or withdrawn by a growing number of companies, including Japanese industrial robot maker Fanuc (6954.T) , opens new tab, Procter & Gamble (PG.N) , opens new tab, PepsiCo (PEP.O) , opens new tab, Chipotle Mexican Grill (CMG.N) , opens new tab, and American Airlines (AAL.O) , opens new tab, signalling possible trouble ahead.

Meanwhile, the Russia-Ukraine war rages on with at least 12 killed in Kyiv in a missile and drone attack that prompted Trump to post "Vladimir, STOP!" on social media.

The earnings and economic data calendars are relatively light today, following a raft of mostly pessimistic sentiment readings for euro zone countries this week.

France reports on the business climate for April and Britain on retail sales for March, while Swedish defence firm SAAB (SAABb.ST) , opens new tab reports first-quarter results.

Key developments that could influence markets on Friday:

-- Canada retail sales for February

-- US earnings: AbbVie, Phillips 66, Schlumberger

-- University of Michigan final survey for April

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https://www.reuters.com/markets/europe/global-markets-view-europe-2025-04-25/