Advances in Asia and on Wall Street overnight are likely to help European stock markets begin higher on Friday.

Before the publication of statistics on the euro zone's services activity, advances in Asia and on Wall Street overnight are likely to help European stock markets begin higher on Friday.

As statistics revealed that activity in China's services sector rose at the highest pace in six months in February, indicating a robust recovery is well underway in this crucial export market for European firms, stocks in Europe are poised to take their lead from rises in Asia overnight.

Later in the afternoon, the main eurozone nations and the U.S. will issue their final services PMI data, which is anticipated to show growth in this industry.

Markets in Europe have already factored in a 50 basis point increase by the European Central Bank in two weeks. President Christine Lagarde stated on Thursday that more interest rate hikes could be necessary to tackle the still very high levels of inflation.

The European Central Bank will increase its main rate from its current level of 3% to 4% before halting, according to Morgan Stanley.

With a significant rise in travel demand, Lufthansa announced a full-year operating profit in the business sector, turning around the previous year's deficit. This was achieved despite high cost inflation and fuel costs.

It's also planned to share financial results from companies like industrial giant IMI and publishing house Pearson.

Despite a little decline on Friday, oil prices are expected to rise for the week as optimism about a rebound in gasoline demand from China, the world's largest crude importer, overshadowed worries about growing U.S. stocks and potential tightening of monetary policy.

Key Developments:

• Eurozone Services PMI due at 09:00 GMT.
• UK Composite & Services PMI due at 09:30 GMT.
• US Services PMI due at 14:45 GMT.

(Investing.com, Reuters.com)