ECB focuses on interest rates and profits

European equities are expected to open slightly higher on Friday morning, after the European Central Bank (ECB) suggested cutting borrowing costs to combat the slowdown in the eurozone economy.

The FTSE 100 is up 2 points to 7,491, the CAC is expected to open around 5 points at 5,583, while the DAX is expected to start 35 points higher at 12,397, according to IG.

The ECB kept interest rates steady on Thursday, but outgoing President Mario Draghi pledged to further ease monetary policy as growth prospects deteriorate.

At a press conference, Draghi told reporters that the economic outlook "is getting worse and worse," citing a weak manufacturing sector as well as uncertainties about trade and Brexit.

Central bank policymakers are also considering other measures to support the eurozone over the coming months, including the resumption of Quantitative Easing (QE).

The euro is set at $ 1.115 on Friday morning, bouncing back from a sitting low of $ 1.101 on Thursday, its lowest level since May 2017.

The latest guidance from the ECB comes shortly before a much-awaited Federal Reserve rate decision. The US central bank is expected to lower rates by 25 basis points by the end of the month.

Elsewhere, uncertainties over the ability of the world's two largest economies to settle a long-standing trade dispute have left many investors on their guard.

Trade officials from the United States and China are scheduled to meet in Shanghai next week.