The FTSE 100 is expected to open higher on Friday, with futures pointing to a gain of around 33 points, or 0.3%, to 10,806.47 after Thursday’s 0.6% decline.
London’s blue-chip index is still down around 1.2% for the week, but sentiment improved after Wall Street advanced overnight on softer US inflation readings.
The S&P 500 gained 0.7% and hit a fresh record high of 7,816.70, while the Nasdaq rose 0.8%.
US consumer inflation eased to 3.4% in July from 3.5% in June, while producer price inflation slowed more sharply than expected to 4.7% from 5.5%.
The cooler figures have reinforced expectations that the Federal Reserve will keep interest rates unchanged in September, with markets now assigning around a 67% probability of a hold.
Sterling edged higher to $1.3501, while Brent crude eased to $87.30 a barrel and gold slipped to around $4,322 an ounce.
Asian markets were mixed, with Japan’s Nikkei 225 up 0.4%, while Hong Kong’s Hang Seng fell 0.8%.
Investors will now focus on eurozone GDP and US retail sales data, while Aviva is due to report half-year results in London.
