European shares were set to open lower on Friday as concerns of a messy Greek debt default persisted after the euro zone finance ministers set more conditions for Greece to secure a second bailout following a deal by Greek leaders on reforms.

The Eurogroup Chairman Jean-Claude Juncker said the Greek parliament must ratify the package when it meets on Sunday and a further 325 million euros of spending reductions needed to be identified by next Wednesday, after which euro zone finance ministers would meet again.

Despite yesterday's agreement between party leaders over the austerity measures, traders still remain sceptical over whether they (Greece) can avoid a default, Jonathan Sudaria, dealer at Capital Spreads, said.

Concerns were raised that Greece still hasn't done enough to satisfy the criteria to receive a bailout.

Greece has fallen deeper into recession since it received a first bailout in May 2010. The EU and the International Monetary Fund are exasperated by a string of broken promises by Athens and weeks of disagreement over the terms of a 130 billion euro (108 billion pounds) bailout, with time running out to avoid a chaotic default.

The Greek saga continues and EU leaders are clearly making the point that there is no more room for any 'free ride', Newedge Strategy said in a note.

Futures for Euro STOXX 50, Germany's DAX and France's CAC were 0.9 to 1.2 percent lower.

Investors will keep a close eye on banking shares after Barclays said its key investment bank arm ended last year with its worst quarter for three years as the euro zone debt crisis hit bond trading activity, dragging the British bank's annual profit down on the year before.

Mining shares could come under pressure as prices of key base metals fell on concerns about demand for raw materials. Copper prices fell more than 1 percent, while zinc was down 1.2 percent.

Asian shares fell on Friday, with MSCI's broadest index of Asia Pacific shares outside Japan <.MIAPJ0000PUS> down 1.5 percent. On Thursday, the FTSEurofirst 300 index <.FTEU3> of top European shares finished 0.3 percent higher at 1,073.53 points.

On the macreconomic front, U.S. international trade data for December is due at 1330 GMT, while preliminary figures from the Thomson Reuters/University of Michigan Surveys of Consumers will be released at 1455 GMT.

China's trade in January fell the most since the depths of the financial crisis, raising concerns Lunar New Year factory shutdowns do not fully explain a slump in imports and may instead be evidence of a further faltering in demand.

COMPANY NEWS

BARCLAYS

Barclays said its key investment bank arm ended last year with its worst quarter for three years as the euro zone debt crisis hit bond trading activity, dragging the British bank's annual profit down on the year before.

TOTAL

The company posted a 7 percent rise in fourth-quarter adjusted net profit thanks to higher oil prices, helping drive a more daring exploration and production strategy that has added to discoveries, and said it would raise exploration spending.

ALCATEL-LUCENT

Telecom gear maker Alcatel-Lucent was hit by slower spending by U.S. operators in the fourth quarter, causing its revenue and margins to slip and delaying a long-awaited turnaround.

SSAB

The Swedish specialty steel maker posted a worse-than-expected operating profit in the fourth quarter and said it had initiated a cost savings programme in Europe in the face of weak demand.

MICHELIN

The world's second-largest tyremaker said profit rose in 2011 on surging demand from European and U.S. truckmakers.

ASSA ABLOY

The world's biggest lock maker posted a marginally bigger-than-expected rise in fourth-quarter core earnings on Friday and said it expected stable development in mature markets this year despite the euro zone debt crisis.

FRAPORT

The company said the number of passengers passing through Frankfurt airport operator rose by 5.5 percent in January, while cargo volumes fell 16.8 percent.

Separately, workers in charge of marshalling planes in an out of parking positions at Frankfurt airport have threatened to strike next week, which would paralyse Germany's largest hub.

RHOEN KLINIKUM

The company said it now expects to post 2012 revenue of 2.85 billion euros after buying a 49 percent stake in Dr.-Horst-Schmidt-Kliniken. It sees net profit of 145 million euros.

UNICREDIT

UniCredit has turned the corner after its 7.5-billion-euro cash call and now has a comfortable liquidity situation, according to a top executive of its Corporate and Investment Banking (CIB) division.

SKY DEUTSCHLAND

The pay-TV broadcaster said it raised 155.8 million euros ($207.28 million) in gross proceeds in a capital increase, the first step in a programme aimed at raising 300 million euros this year. Related news

CASINO , MERCIALYS

The French retail chain aims to cut its 50.1 percent stake in real-estate unit Mercialys to between 30 and 40 percent by the end of 2012, part of a plan to cut debt and improve financial flexibility.

RENAULT

The French carmaker is still open to building a factory in Algeria and talks are ongoing, Chief Executive Carlos Ghosn told a press conference in Morocco.

Meanwhile, French newspaper La Tribune reported on its website that Renault is preparing to launch an ultra-low-cost car worth around 3,000 euros before 2016, citing several unnamed sources.

(Reporting by Atul Prakash)