LONDON (ShareCast) - UK stock markets were set for a quiet start on Friday as investors awaited a busy day on the economic data calendar.
City sources predict the FTSE 100 will open flat on Thursday's close of 7,013.47, its highest close since 11 May.
Macro indicators came in mixed the previous session, with manufacturing purchasing managers' indices from across the globe moving in opposite directions. Markit's Eurozone manufacturing PMI unexpectedly jumped to a 13-month high of 52.3, the HSBC China manufacturing PMI improved less than expected to 49.1, while the Markit US manufacturing PMI fell to a 16-month low of 53.8.
Other data from the US also disappointed: jobless claims increased a little more than forecast, existing-home sales showed a surprise slump, while the Philly Fed and Chicago Fed activity indices both missed estimates.
Nevertheless, Wall Street stocks gained on Thursday night, sending the S&P 500 to a fresh record closing high of 2,130.82 after minutes from the Fed's latest meeting - released on Wednesday - showed that a June rate hike was unlikely.
As for Friday's session, traders are expected to begin in a cautious mode ahead of key speeches from Mario Draghi, Mark Carney and Janet Yellen today, with the US consumer price index (CPI) at 13:30 trying to steal the spotlight. The US CPI print is forecast to show that the annual rate of inflation worsened to -0.2% in April from -0.1% in March.
UK borrowing figures and the German IFO business sentiment index will also be released.
Stocks to watch
HSBC has confirmed rumours that it is looking at a possible disposal of its Brazilian operations, though it has not yet made a decision. In a short statement on Friday morning, the global banking giant said: "HSBC confirms that it is exploring various strategic options for its operations in Brazil, including the potential sale thereof."
Costa coffee shops and Premier Inns hotels owner Whitbread has appointed Alison Brittain, current head of Lloyds's high street banking division, as its new chief executive, only the sixth woman in a FTSE 100 top role. Career banker Brittain, who has been at Lloyds since 2011 after previous roles at Santander and Barclays, has switched into the leisure sector after Whitbread's current chief, Andy Harrison, announced his retirement last month.
London-listed utility company Severn Trent posted a 53.5% drop in full-year pre-tax profit, pointing to a fair value loss on financial instruments, largely due to lower expectations for future interest rates, and an exceptional tax credit in the previous year.
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