European markets were mixed in morning trading after the pound's "flash crash" in the early hours of Asia's trading session on Friday. Investors are also taking a cautious tone ahead of today's U.S. jobs report.
Futures were pointing to the U.S. markets opening down. Dow Jones Industrial Average mini futures were recently down 0.23% and S&P 500 mini futures were down 0.27%.
The British currency fell more than 6% against the dollar in two-minutes when markets opened in Asia, to fall to $1.1841. The reason for the fall is yet unknown with rumors of a "fat finger" trade, computer glitches and the fact that France's president took a hard line on Brexit on Thursday.
The pound pared the earlier losses and was recently down 1.44% at $1.2434.
The euro has gained in the turmoil, reaching a five-year high against the pound up 1.10% to £0.8935.
Data out of Europe showed encouraging signs for the economies on the continent. German industrial production figures for August were ahead of expectations. Production rose 2.5% month-on-month. Economists has expected a rise of just 1% in August after a fall of 1.5% in July.
Year-on-year production rose 1.9% in August, compared with forecasts of a 0.4% rise.
In France factory output was also up in August. Industrial production was up 2.1% month-on-month, data from statistics agency Insee show, better than expectations of a rise of just 0.6%.
In London, the FTSE 100 was up 0.44% to 7,030.04 making it the only European market in positive territory.
In Frankfurt, the Dax was down 0.43% at 10,523.40 and the Cac 40 lost 0.45% to 4,460.04.
Rio Tinto (RIO) was up 1.78% and Antofagasta gained 1.68%.
Deutsche Bank (DB - Get Report) had recently gained 1.42% in Frankfurt. Reports today in the Financial Times suggest the bank is considering an IPO of its asset management division, raising €2 billion to €3 billion. The German lender has declined to comment on the reports.
Innogy, the renewable business floated by German utility company RWE today, were trading about their IPO price of €36 at €36.86. The company is made up of RWE's renewables, retail and grid businesses and was formed as RWE attempts to adapt to Germany's push towards renewables.
Dutch lender ABN Amro gained 1.7% in early trading after the Dutch government rejected a bid from Nordea (NRBAY) to buy the bank.
West Texas Intermediate was recently up 0.18% at $50.68 and Brent Crude had gained 0.53% to $52.79 a barrel.