LONDON (ShareCast) - The FTSE is set for a modest rise at Friday's opening bell, with gains limited by a weak performance in the US and Asia overnight amid ongoing geopolitical concerns about both Russia and Iraq.
City sources predict the top tier index will open around seven points above Thursday's close of 6,639.71.
Despite predictions the FTSE will shrug off the concerns, "with Japanese CPI pulling back, a German consumer confidence survey expecting to fall, and the UK likely to announce their willingness to act in Iraq, there is little to be positive about today" noted Alpari market analyst Joshua Mahony.
August Japanese CPI saw the headline measure decline for a third consecutive month, piling pressure on the Bank of Japan to increase stimulus measures.
"Stripping out the 2% rise that was attributed to the sales tax hike in April, the subsequent figure of 1.3% is the lowest level since October 2013 and proves that the recent trend is no short term phenomenon," Mahony said.
"The BoJ will have to act, and act soon should they wish to get price growth back on target towards 2%."
Friday's focus will also be very much on an anticipated Commons vote on UK involvement in a war against the "Islamic State".
The outcome is widely expected to support participation and comes after Obama pledged the US's support earlier this week.
In company news, ground engineering firm Keller Group has announced that Justin Atkinson, the company's chief executive (CEO), will retire from his role at the end of 2015. The group has confirmed it has already started a selection process to find a replacement for the outgoing CEO, who first joined the company in 1990.
Slower-than-expected growth in its solutions division and challenging market conditions in its currency division have forced Security documents designer and producer De La Rue to lower its expectations for the current and next financial year. The company said it expects operating profit and underlying profit before tax for the year to be £20m lower than originally estimated.
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