Europe's top shares fell on Friday but remained on course for a seventh straight week of gains as expectations of further stimulus measures in the United States and robust corporate earnings offset a weak macroeconomic outlook. The FTSEurofirst 300 .FTEU3 was down 0.2 percent after closing at its highest level since early April on Thursday.

Japan's Nikkei share average fell 1.4 percent on Friday as investors took profits and scrambled to cover shorts after positive U.S. earnings failed to dispel pessimism about the creaky global economy as more disappointing data emerged.

Euro zone finance ministers are set to sign off on conditions attached to the release of bailout funds to Spain during a conference call due to start at 6 a.m. EDT.

A group of banks being investigated in an interest rate-rigging scandal are looking to pursue a group settlement with regulators rather than face a Barclays-style backlash by going it alone, people familiar with the banks' thinking said.

Google Inc's (GOOG.O) core Internet business increased revenue by 21 percent in the second quarter, easing Wall Street worries that a slumping global economy would take a toll on the company's online advertising. Shares of the world's No.1 search engine were up about 3 percent in after-hours trade.

EBay Inc (EBAY.O) on Thursday lowered its third-quarter and full-year earnings outlook to account for the impact of a $3 billion debt offering, which it priced earlier in the day.

New Yahoo (YHOO.O) Chief Executive Marissa Mayer's compensation package could total more than $70 million in salary, bonuses, restricted stock and stock options over five years, according to a regulatory filing made by the company Thursday.

Microsoft Corp (MSFT.O) reported its first quarterly loss as a public company on Thursday as it took a previously announced hit for writing down the value of its ailing online unit, but held up better than expected in the face of stagnant computer sales.

SanDisk Corp (SNDK.O) beat quarterly earnings and revenue forecasts on Thursday after a steep decline in margins on its flash memory chips was not as bad as feared, while the chip maker said it was optimistic about the second half.

Dell Inc's (DELL.O) new software chief plans to increase the size of the business five-fold, a target that could eventually account for at least 25 percent of the No. 3 personal computer maker's profits.

General Electric, the largest U.S. conglomerate, is expected to see its earnings per share rise 3 cents to $0.37 when it reports second-quarter results on Friday, as Chief Executive Jeff Immelt works to improve profit margins across the company, whose operations range from manufacturing railroad locomotives to lending money to mid-sized businesses.

Business-services company Xerox announces second-quarter results, with EPS seen down 1 cent year on year to $0.26.

The Dow Jones industrial average .DJI gained 34.66 points, or 0.27 percent, to 12,943.36 on Thursday. The Standard & Poor's 500 Index .SPX rose 3.73 points, or 0.27 percent, to 1,376.51. The Nasdaq Composite Index .IXIC added 23.30 points, or 0.79 percent, to 2,965.90.

(Reporting By Francesco Canepa in London; Editing by Pravin Char)

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