European Factors to Watch-Futures up as China rebounds
(Adds futures prices, company items)
MILAN Jan 8 (Reuters) - European shares were expected to open slightly higher on Friday, signalling a possible stabilisation of this week's sell-off as China stocks rose after the circuit breaker mechanism was axed to calm investor sentiment and the yuan fixed higher.
Futures on the Euro STOXX 50, German DAX, French CAC and British FTSE 100 indexes rose between 0.3-0.5 percent by 0715 GMT.
China's major stock indexes rose strongly on Friday after Beijing ditched a circuit breaker mechanism that halted trading twice this week and had been blamed for exacerbating the market sell-offs it was designed to limit.
The People's Bank of China also raised its guidance rate for the yuan for the first time in nine trading days, having allowed the currency's biggest fall in five months on Thursday, sending shivers through regional currencies and global stock markets.
On Thursday European shares fell sharply but were already helped off their lows after China announced the suspension. The pan-European FTSEurofirst 300 index closed down 2.3 percent, having dropped over 3 percent during the session. The index was on track for its steepest decline since late August.