(Alliance News) - Stocks in London are set to open higher on Friday, after the Bank of Japan left interest rate unchanged.

IG says futures indicate the FTSE 100 to open up 26.2 points, 0.3%, at 8,189.87 on Friday. The index of London large-caps closed down 51.81 points, 0.6%, at 8,163.67 on Thursday.

The Bank of Japan on Friday said it would trim its vast hoard of government bonds as it cautiously steps away from its long-running ultra-loose monetary policy.

The central bank kept interest rates unchanged after a two-day meeting but announced plans to "reduce its purchase amount of JGBs (Japanese Government Bonds) thereafter to ensure that long-term interest rates would be formed more freely".

"A detailed plan" for the reduction "during the next one to two years or so" will be decided at the next policy meeting in July, it said.

The BoJ raised rates in March for the first time since 2007, and Friday's move marks another step away from more than two decades of quantitative easing designed to banish stagnation and harmful deflation.

Sterling was quoted at USD1.2752 early Friday, lower than USD1.2764 at the London equities close on Thursday. The euro traded at USD1.0736 early Friday, lower than USD1.0763 late Thursday.

Against the yen, the dollar was quoted at JPY157.95, up versus JPY156.88.

In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.2%, whilst the S&P 500 was up 0.2% and the Nasdaq Composite up 0.3%

In Asia on Friday, the Nikkei 225 index in Tokyo was up 0.4%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was down 0.5%. The S&P/ASX 200 in Sydney closed down 0.3%.

Gold was quoted at USD2,310.20 an ounce early Friday, higher than USD2,307.79 on Thursday.

Brent oil was trading at USD82.40 a barrel early Friday, lower than USD82.53 late Thursday.

In Friday's corporate calendar, there is eurozone trade data at 1000 BST.

The local corporate diary has a trading statement from grocer Tesco.

By Sophie Rose, Alliance News senior reporter

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