(Alliance News) - Stocks in London are set to open slightly higher on Friday, as investors eye a key US inflation reading.

IG says futures indicate the FTSE 100 to open up 9.0 points, 0.1%, at 7,363.57 on Friday. The index of London large-caps closed down 59.77 points, 0.8%, at 7,354.57 on Thursday.

Asian markets managed to shake off a weak close on Wall Street, as investors looked ahead to a key US inflation figure.

In Asia on Friday, the Nikkei 225 index in Tokyo was up 1.3%. In China, the Shanghai Composite was up 1.1%, while the Hang Seng index in Hong Kong was up 2.0%. The S&P/ASX 200 in Sydney closed up 0.2%.

In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.8%, the S&P 500 down 1.2% and the Nasdaq Composite down 1.8%.

"Today's core [personal consumption expenditures] inflation numbers could help inform that thought process further on whether to hike rates again by another 25bps," said Michael Hewson at CMC Markets UK.

"With the latest economic projections citing a Fed funds rate of 5.6% by year end and another spike in oil prices exerting further upward pressure on prices, as well as wages, the Fed will want to keep markets thinking that another rate rise is on the table between now and the end of the year."

Further, China's top diplomat voiced hope for more stable relations with the US after months of turbulence as he paid a rare trip to Washington to prepare a potential visit by President Xi Jinping.

President Joe Biden has invited Xi to San Francisco to participate in the Asia-Pacific Economic Cooperation summit, but he has also stood firm on China in the run-up, keeping up a stream of targeted sanctions and staunchly backing US allies in disputes with Beijing.

Chinese Foreign Minister Wang Yi began by meeting Secretary of State Antony Blinken, who told his guest that he looked forward to "constructive conversations" that will include a dinner and more formal talks.

Sterling was quoted at USD1.2136 early Friday, higher than USD1.2105 at the London equities close on Thursday.

The euro traded at USD1.0567, higher than USD1.0527. Against the yen, the dollar was quoted at JPY150.18, down versus JPY150.48.

Gold was quoted at USD1,987.44 an ounce early Friday, higher than USD1,978.13 on Thursday.

Brent oil was trading at USD88.41 a barrel, higher than USD87.74.

In Friday's UK corporate calendar, IAG and NatWest release their third quarter results.

By Sophie Rose, Alliance News reporter

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