The European Central Bank's governing council Thursday cut three key interest rates by 25 basis points, based on inflation falling.

European shares opened muted on Friday, after the European Central Bank's latest rate cut and upbeat earnings prompted strong gains in the previous session, with the main stocks gauge headed for a second weekly rise.

The European Central Bank, which sets interest rates for the 20 countries that use the euro currency, is not expecting the bloc to fall into recession as it cut borrowing costs once again after figure