LONDON (AFP) - European stock markets edged higher in early deals, with trading volatile owing to key futures and options expiries in Europe and the United States, dealers said.
The British FTSE 100 index rose 0.71 percent at 4,589.0 points, the German DAX 30 climbed 0.35 percent to 3,977.40 points and the French CAC 40 advanced 0.77 percent to 3,720.17 points.
The DJ Euro Stoxx 50 index firmed 0.58 percent to 2,781.80 points.
The euro stood at 1.2215 dollars.
In New York shares clocked up slim gains Thursday as US investors shrugged off a sales warning from Nortel Networks and a late-session spike in oil prices.
Instead dealers responded positively to tame US inflation data and a survey showing a modest manufacturing expansion.
The Dow Jones Industrial Average gained 0.13 percent to 10,244.49 points, and technology-laden Nasdaq composite advanced 0.40 percent to 1,904.08.
The main broad-market indicator, the Standard and Poor's 500 index, added 0.28 percent to 1,123.50 points.
With a 'quadruple witching' of futures and options expiries in New York Friday trading was expected to be volatile.
In Asia Japanese share prices closed down 0.51 percent Friday as technology shares remained on the defensive, driving the Tokyo Nikkei-225 index down to 11,082.49 points.
Hong Kong's Hang Seng Index closed up 0.11 percent at 13,224.93 points.
With little corporate news in Europe, investors were awaiting US economic data including the Michigan consumer sentiment index for September, which was expected to show an increase in the key index to 96.8, up from 95.9 in August.
"The first reading of the University of Michigan consumer sentiment index is expected to register a modest gain," said Nomura Securities investment strategist Anais Faraj.
"That would tally with the recent monthly and weekly retail sales reports, which point to a gradual seasonal pick-up in spending. However, that recovery is still patchy and the markets are unlikely to react to the index unless we see a significant (five-point or more) surprise in either direction."
In Paris shares in Veolia Environnement gained 1.70 percent to 23.33 euros as investors welcomed the company's solid first-half results and plans to raise its dividend payouts from 2005, dealers said.
"The company has announced a series of good news today: a higher-than-expected net profit, lower net debt, and plans for higher dividend payments," one Paris-based trader said.