(Alliance News) - Stocks in London are set to open higher on Friday, as fears of a US debt default abate.
IG says futures indicate the FTSE 100 index of large-caps to open up 19.5 points, 0.3%, at 7,761.8 on Friday. The FTSE 100 index closed up 19.07 points, 0.3%, at 7,742.30 on Thursday.
In positive news for UK businesses, a survey suggests that consumer confidence in the year ahead is continuing to recover despite persistent cost-of-living pressures.
GfK's consumer confidence index rose by three points in May to minus 27, the fourth monthly increase in a row from January's minus 45.
US stocks closed higher on Thursday. The Dow Jones Industrial Average ended up 0.3%, the S&P 500 up 0.3%, and the tech-heavy Nasdaq Composite up 1.5%.
Sentiment was boosted by rising hopes of breaking the debt ceiling impasse in the US.
Top US Republican Kevin McCarthy said he saw "the path" to a breakthrough in talks to avert a looming debt default – suggesting a vote would be possible as early as next week.
The dollar managed to hold on to Thursday's gains in early exchanges.
Sterling was quoted at USD1.2398 early Friday, unchanged from USD1.2399 at the London equities close on Thursday. The euro was unchanged at USD1.0764.
In Asia on Friday, the Nikkei 225 index was up 0.7% in late trade, on course to add 4.2% this week. The index is up 20% in the year-to-date.
"The outperformance of Japanese markets has taken place almost unnoticed until this week, with the Bank of Japan's currently loose monetary policy helping to underpin recent gains," said CMC Markets' Michael Hewson.
However, Hewson said an uptick in Japan's inflation could prove to be a cause for concern for BoJ policymakers.
Japan's consumer prices rose 3.4% on-year in April, in line with market expectations, government data showed. The figure, which excludes volatile fresh food prices, followed a 3.1% rise recorded in both March and February.
Inflation in Japan is lower than the sky-high price increases seen in the US and elsewhere that have prompted central banks to hike interest rates. Yet it remains higher than the BoJ's 2% target, which has been surpassed every month since April last year.
Against the yen, the dollar was quoted at JPY138.44 early Friday in London, edging down from JPY138.64 late Thursday.
In stock markets in China, the Shanghai Composite index was down 0.3%, while the Hang Seng index in Hong Kong was down 1.2%. The S&P/ASX 200 in Sydney was up 0.6%.
Gold was quoted at USD1,962.27 an ounce early Friday, higher than USD1,953.31 on Thursday. Brent oil was trading at USD76.48 a barrel, up from USD76.23.
Friday's economic calendar has the producer price index for Germany at 0700 BST.
A slim London corporate calendar has a trading statement from law firm Knights Group and third-quarter results from engineering firm Smiths Group.
By Elizabeth Winter, Alliance News senior markets reporter
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