(Alliance News) - London's FTSE 100 is called to open flat on Friday, but is on track for a weekly gain as markets are supported by the implications of slowing US inflation.
IG says futures indicate the FTSE 100 index of large-caps to open a marginal 0.1 point higher at 7,794.14 on Friday. The blue-chip index closed up 69.06 points, or 0.9%, at 7,794.04 on Thursday. It has risen 2.1% so far this week.
Shares in Asia were largely mixed on Friday, though a stronger yen weighed on the Nikkei 225 in Tokyo.
In China, the Shanghai Composite was 0.7% higher in afternoon dealings, which the Hang Seng in Hong Kong rose 0.6%. The S&P/ASX 200 surged 0.7% in Sydney, though the Nikkei 225 in Tokyo fell 1.3%.
"Shares are mixed in Japan, with the Nikkei 225 lower and the broader Topix index little changed as the outlook for exporters wanes on the back of the yen's surge," SPI Asset Management analyst Stephen Innes commented.
The yen gained on the dollar following a favourable US inflation report on Wednesday. The dollar faded to JPY128.76 early Friday London time, from JPY129.68 late Thursday. The pound rose to USD1.2198 from USD1.2171, while the euro rose to USD1.0846 from USD1.0814.
Annually, the US consumer price index rose 6.5% in December, in line with FXStreet-cited consensus, and slowing from the 7.1% annual rise recorded in November.
In New York on Thursday, the Dow Jones Industrial Average closed up 0.6%, the S&P 500 added 0.4% and the Nasdaq Composite climbed 0.7%.
Eyes now turn to corporate America. Earnings season kicks off, with full-year results from banking bellwethers JPMorgan Chase & Co, Wells Fargo, and Bank of America.
"We sense that the bar remains quite high for long-only investors to move off the sidelines to support the stocks," analysts at UBS commented.
Brent oil was quoted at USD83.60 a barrel early Friday, down from USD84.03 late Thursday. Gold was quoted at USD1,896.12 an ounce, rising from USD1,891.07 on the back of the weaker dollar.
Friday's UK economic calendar has a UK gross domestic product reading at 0700 GMT. The UK economy is expected to have shrunk 0.2% month-on-month in November, following a 0.5% rise in October, according to market consensus cited by FXStreet.
In the UK corporate calendar, there are trading statements from housebuilders Taylor Wimpey and MJ Gleeson as well as from soft furnishing retailer DFS Furniture.
By Eric Cunha, Alliance News news editor
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