LONDON (Alliance News) - UK stocks are pointed to a higher open Friday, ahead of UK unemployment data and inflation numbers from the eurozone and the US.
IG says futures indicate the FTSE 100 to open 10 points higher at 7,070.0. The index closed down 0.5% at 7,060.45 on Thursday after hitting a new intraday record high of 7,119.35 in the first minute of trade.
On Wall Street Thursday, the DJIA ended slightly lower, the S&P 500 closed down 0.1%, and the Nasdaq Composite also ended down 0.1%.
In Asia Friday, the Japanese Nikkei closed down 1.2%, while the Hang Seng is up 0.3% and the Shanghai Composite is up 2.4%.
Japan's consumer confidence improved for the fourth straight month in March, surpassing expectations, survey data from the Cabinet Office showed. The consumer confidence index rose to 41.7 in March from 40.9 in the previous month. Economists had expected the index to increase to 41.3. The latest reading was the highest since December 2013, when it marked the same 41.7.
Investor focus will remain on Greece, after the International Monetary Fund ruled out allowing the cash-strapped country to delay scheduled debt repayments, while the European Commission voiced dissatisfaction over talks with Athens to solve Greek financial woes.
IMF chief Christine Lagarde said that a delay in Greek payments would constitute "additional financing" to Athens. A delay would be "clearly not a course of action that would...be recommendable" to the IMF's board, she said. "We have never had an advanced economy ask for payment delays," Lagarde said.
"If Greece does default on its payments and misses next Friday's deadline for reforms then that does not necessarily mean that it will leave the eurozone. The EU have told Greece that they will lend to them if they can also find another creditor. However with Greece's track record and its refusal to undertake any more plans in terms of austerity they may find it incredibly difficult to find any support," says James Hughes, chief market analyst at eToro.
AstraZeneca said on Friday the US Food and Drug Administration has granted orphan drug designation for its selumetinib treatment for uveal melanoma. The Orphan Drug Designation programme provides orphan status to drugs and biologics, which are defined as those intended for the safe and effective treatment, diagnosis or prevention of rare diseases or disorders that affect fewer than 200,000 people in the US, it added.
FTSE 250-listed outsourcer Serco Group said it has received 94.7% acceptances for its one-for-one rights issue launched last month after the group posted a huge loss on the back of massive provisions taken on onerous contracts.
Serco said in March it would launch the GBP555 million rights issue in order to refinance its existing lending facilities and cut its gross debt pile by GBP450 million. The rights issue emerged after it posted a pretax loss for 2014 of GBP1.35 billion, having booked GBP1.31 billion in impairment charges and writedowns related to problem contracts.
The UK Competition and Markets Authority said there has been no material change in circumstances or any special reason for it reverse its ruling to force Ryanair Holdings to sell down its stake in Irish flag carrier Aer Lingus Group. Ryanair requested in February that the CMA, the UK's competition authority, re-examine its decision to require Ryanair to sell down its 29.8% stake in Aer Lingus to 5%.
In the economic calendar, UK unemployment and wage data is at 0930 BST before eurozone consumer prices at 1000 BST and US CPI at 1330 BST. After the close of London stock markets, there is the US Reuters/Michigan consumer sentiment index at 1900 BST.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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Astrazeneca (AZN)
Serco (SRP)