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CAUTIOUS TRADING

European shares are cautiously higher in the first hour of trading, catching up with a late Thursday rally on Wall Street and a slightly softer oil price.

But that hasn't really told us much about how investors see the situation, which all still depends on what happens in the Middle East and the oil price.

News that Unilever ULVR.L is in talks with U.S.-based McCormick & Company MKC.N about selling its foods business, did little for the company's shares, which were last up around 1%.

The STOXX 600 .STOXX, meanwhile is up around 0.7%, but still headed for a third straight weekly decline, its longest such stretch since last April.

Oil and gas stocks .SXEP are down 0.7%, but still up 4.8% this week and over 11% this month, thanks to soaring energy prices.

(Alun John)

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EARLIER LIVE MARKETS POSTS:

BEFORE THE BELL: EUROPEAN FUTURES HIGHER, BUT STOCKS SET FOR A WEEKLY DECLINE CLICK HERE

MORNING BID: HAWKISH RATE REPRICING HALTS THE DOLLAR'S RALLY CLICK HERE