(Alliance News) - The FTSE 100 set to open higher on Friday, as a data-heavy week in the UK culminates with a retail sales reading for January, while NatWest becomes the first of the major London-listed banks to report annual earnings.
IG says futures indicate the FTSE 100 to open 36.8 points higher, 0.5%, at 7,634.33 on Friday. The index of London large-caps closed up 29.13 points, 0.4%, at 7,597.53. It has risen 0.3% so far this week.
Optimism from a strong day on Wall Street fed through to trading in Asia and has supported European stock market futures.
In Tokyo on Friday, the Nikkei 225 rose 0.9%, while the Hang Seng in Hong Kong jumped 2.3%. In Sydney, the S&P/ASX 200 added 0.7%. Financial markets in Shanghai reopen on Monday.
In New York, the Dow Jones Industrial Average shot up 0.9% on Thursday. The S&P 500 climbed 0.6% and the Nasdaq Composite rose 0.3%.
"Despite initial concerns at the beginning of 2024 regarding a potential equity sell-off, investors have remained resilient, defying sceptics and maintaining a positive trajectory," SPI Asset Management analyst Stephen Innes commented.
"However, market attention is now focused on the upcoming release of the producer price index in the US on Friday, which could very well play a significant role in shaping market sentiment. The PPI's implications for the Federal Reserve's preferred inflation gauge make it a closely watched indicator."
The US data is reported at 1330 GMT.
In the UK, there will be retail sales data reported at 0700 GMT.
It follows data showing the UK entered a technical recession at the end of last year. Combined with a softer than expected inflation reading, it bolstered support for an early Bank of England interest rate cut.
According to FXStreet cited consensus, retail sales are expected to have risen 1.5% in January from December. They had fallen 3.2% on-month at the end of last year.
The pound was quoted at USD1.2581 early Friday, unchanged from late Thursday. The euro bought USD1.0761, flat from USD1.0759 at the time of the last European equities close. The dollar rose to JPY150.26 against the yen, from JPY150.11.
A barrel of Brent oil fetched USD82.74, up from USD82.66. Gold was quoted at USD2,003.61 an ounce, up from USD1,999.98.
Friday's UK corporate calendar has annual results from lender NatWest, while property investor Segro also announces full-year numbers.
By Eric Cunha, Alliance News news editor
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Natwest (NWG)