(Alliance News) - Stocks in London are set to open slightly higher on Friday, following positive trading days in Asia and the US.
IG says futures indicate the FTSE 100 index of large-caps to open up 11.0 points, 0.1%, at 7,473.27 on Friday. The FTSE 100 index closed down 17.02 points, or 0.2%, at 7,472.17 on Thursday.
Sterling was quoted at USD1.2263 early Friday, edging up from USD1.2218 at the London equities close on Thursday. The euro traded at USD1.0574 early Friday, higher than USD1.0547 late Thursday. Against the yen, the dollar was quoted at JPY136.11, up versus JPY135.56.
"European markets finished the day lower yesterday, with nervousness over a global slowdown very much front of mind with the market very much in defensive mode as we head into the weekend," said CMC Markets' Michael Hewson.
In New York on Thursday, however, the Dow Jones Industrial Average closed up 0.6%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.1%.
"US markets on the other hand managed to break a five-day losing streak by finishing the session higher, despite further weakness in oil prices which saw prices hit their lowest levels this year for the second day in succession. This recovery along with a positive Asia session looks set to translate into a positive European open," Hewson said.
In Tokyo on Friday, the Nikkei 225 index closed up 1.2%. In China, the Shanghai Composite was up 0.3%, while the Hang Seng index in Hong Kong was 2.3%. The S&P/ASX 200 in Sydney closed up 0.5%.
China's consumer price inflation slowed further in November as it fell below two percent for the first time since March, official data showed Friday, providing authorities room to unveil fresh measures to kickstart the stuttering economy.
The main gauge of inflation, the consumer price index, rose 1.6% on-year last month, slowing from 2.1% in October, according to the National Bureau of Statistics. This was higher than FXStreet-cited consensus of a 1% annual rise.
On a monthly basis, consumer prices fell 0.2%, more than reversing a 0.1% rise in October.
Producer prices in China declined by 1.3% in November from a year before, the same annual rate of decline as in October, owing to weak demand and the imposition of Covid containment measures.
Gold was quoted at USD1,793.04 an ounce early Friday, higher than USD1,787.73 on Thursday, while Brent oil was trading at USD76.55 a barrel, largely unchanged from USD76.38.
In the economic calendar on Friday, the US will publish PPI data at 1330 GMT.
US factory gate inflation is expected to cool to 7.4% in November from a year before, compared to 8% in October, according to FXStreet-cited consensus.
In the UK corporate calendar on Friday, there are trading statements from retailer Associated British Foods and mining firm Anglo American.
UK Chancellor Jeremy Hunt will head to Edinburgh to launch a major reform of the UK's financial sector with plans to rip up red tape and replace reams of EU regulations.
Hunt will set out a package of more than 30 regulatory reforms, with plans to "review, repeal and replace" hundreds of pages of EU regulations ranging from disclosure for financial products to prudential rules governing banks.
By Elizabeth Winter, senior markets reporter
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