LIVE MARKETS-Europe seen shaking off earnings jitters

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EUROPE SEEN SHAKING OFF EARNINGS JITTERS (0514 GMT)

Investors in European stocks appear set to shake off yesterday's worries about weak earnings reports and return to riskier assets after comments overnight from a Federal Reserve top official reinforced expectations of a U.S. interest rate cut at the end of the month, offsetting worries about renewed tensions between the United States and Iran.

Asian and U.S. market returned to a firmer footing after New York Fed President John Williams said policymakers could not wait for economic disaster to hit before adding stimulus, in a speech interpreted as a strong argument in favour of quick monetary action.

That may offset fresh geopolitical jitters after the U.S. Navy destroyed an Iranian drone in the Strait of Hormuz, a major choke point for global crude flows, again raising tensions in the Middle East.

The resulting run-up in crude prices will give London's oil heavy FTSE 100 a lift.

IG financial spreadbetters expect London's FTSE to open 32 points higher at 7,525, Frankfurt's DAX to open 84 points higher at 12,312, and Paris' CAC to open 36 points higher at 5,587.

The benchmark STOXX 600 is flat on the week.

(Josephine Mason)

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(Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)