European markets diverged early on Friday as tensions between the United States and Iran escalated after Iran dropped a US drone, claiming it flew into its airspace. Tehran has insisted it has evidence that the US military violated Iranian airspace and said it had found parts of the drone that landed in its territorial waters.

 At the same time, in the United States, President Donald Trump authorized a military strike on Iran but changed his mind a few hours later.

German production records moderate growth in June

The IHS Markit index on Friday said Germany's PMI manufacturing index reached 45.4 in June, up from 44.3 in May to a four-month high. Service PMI registered the highest level in two months at 55.6, an increase of 0.2 compared to May. The composite PMI output index was reported as unchanged from the previous month at 52.6.

Growth in the second quarter was the strongest since the third quarter of last year, but next year's production growth forecast fell to its lowest level since October 2014 as manufacturing output fell for a fifth straight month in June. New export orders have fallen over the past 10 months, and eight-time work has fallen in eight months.

"The growth of the services sector is still above trend, and although manufacturing continues to decline in June, there are initial signs that the worst has gone through the major indicators of production, new orders, exports, and jobs," said Trevor Balchin, economics director at IHS Markit. From its lowest level in several years, but the long-term outlook for the German private sector is still weak. The index of future output fell to a 56-month low in June due to weak sentiment among service providers. The next 12 months, on For even though this is an improvement compared to pessimistically recent months. "

European Stocks Open

• The FTSE 100 rose 0.16% at 9:14 am CET, led by Carnival gains of 2.28% at 9:15 am CET.
• The DAX fell 0.13% at 9:15 CET. The worst performing shares in terms of subtracted value for the index were led by the ThyssenKrupp AG share as it plummeted 1.45% at 9:16 am.
• The CAC 40 was 0.10% green at 9:15 am with Renault's 1.86% rise at 9:16 am CET.

The euro was up 0.16% against the dollar, buying 1.1307 at 9:16 CET.