European markets set to open mixed after UK borrowing costs hit multi-decade highs

European markets are set to open in mixed territory on Friday, as investors monitor economic data and ongoing turbulence in the U.K.'s debt markets.

The FTSE 100 is expected to open 63 points higher at 8,314, according to IG, while the German DAX is slated to shed 8 points to open at 20,321.7. France's CAC 40 is set to gain 38 points to open at 7,490.5, IG notes.

Traders in the region are monitoring developments in the U.K. market, as yields on some gilts — British government bonds — hit their highest levels in decades this week.

After yields on 30-year gilts soared to their highest rates since the late 1990s in recent days, the yield on 10-year gilts hit its highest since the 2008 financial crisis on Thursday. Britain's 10-year gilt yields were little changed on Friday morning.

Meanwhile, the British pound has slumped to its lowest against the U.S. dollar in more than a year, trading at $1.2284 at 7:25 a.m. London time.

Concerns about the shape of the U.K. economy are mounting, with investors and businesses taking note of new fiscal policies that will see taxes and business costs rise, as well as weak economic data prints out of Britain and sticky inflation.

Some of Europe's biggest economies are set to publish economic data on Friday. France and Spain will release industrial production updates for November, while Italy will publish retail sales figures.

Overnight in Asia, stocks were mostly lower as investors monitored Japanese data prints and reports that the People's Bank of China would suspend treasury bond purchases.

On Wall Street, stock futures slid on Friday, as investors braced for the release of December nonfarm payrolls data, with economists polled by Reuters anticipating a slowdown in job openings from the previous month.

— CNBC's Lim Hui Jie and Sean Conlon contributed to this European markets story.