(Alliance News) - Stocks in London are set to open flat on Friday, with investors failing to muster much enthusiasm as US debt ceiling uncertainty continues.

IG says futures indicate the FTSE 100 index of large-caps to open down 1.3 points at 7,569.57 on Friday. The FTSE 100 index closed down 56.23 points, 0.7%, at 7,570.87 on Thursday.

In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average rising 0.1%, and the S&P 500 climbing 0.9%. The tech-heavy Nasdaq Composite stormed ahead, adding 1.7%, as chipmaker Nvidia jumped 24%.

"The technology stocks were euphoric yesterday, but the rest of the sectors were much less appetizing. US debt ceiling talks continued, there was again some optimism on the headlines, but no deal has been reached and the clock is ticking louder into the June 1st deadline," noted Swissquote Bank's Ipek Ozkardeskaya.

President Joe Biden declared Thursday the US would avoid a disastrous credit default, even as lawmakers went on a 10-day break without a deal on raising the nation's borrowing limit to keep paying the bills.

There are seven days until June 1 – the earliest possible point when the government estimates it could run out of money to service its debts – and missed loan repayments would likely spark a recession, roiling world markets.

Nevertheless, the tech boost fed through to Japanese equities on Friday, with the Nikkei 225 index rising 0.8%. In China, the Shanghai Composite was up 0.5%, while financial markets in Hong Kong closed for Buddha Day. The S&P/ASX 200 in Sydney was up 0.2%.

The pound was stronger, after hawkish rhetoric from a Bank of England official late Thursday.

The central bank cannot rule out more interest rate increases, Jonathan Haskel - a member of its decision-making body - told an audience in Washington, DC. He said that inflation could be worse, but that the bank might be forced to increase interest rates again in order to bring it back to its 2% target.

Sterling was quoted at USD1.2340 early Friday, higher than USD1.2330 at the London equities close on Thursday.

The euro traded at USD1.0739, up from USD1.0723. Against the yen, the dollar was quoted at JPY139.74, down slightly versus JPY139.85.

Gold was quoted at USD1,949.41 an ounce early Friday, up slightly from USD1,945.11 on Thursday.

Brent oil was trading at USD76.00 a barrel, lower than USD76.15.

Friday's economic calendar has a UK retail sales reading at 0700 BST.

According to FXStreet-cited market consensus, retail sales are expected to have risen 0.3% month-on-month in April, compared to a 0.9% contraction in March. On an annual basis, they are expected to fall 2.8%, compared to a 3.1% decline in March.

The latest US core personal consumption expenditures reading is reported at 1330 BST. Core PCE is the Federal Reserve's preferred inflationary reading.

Friday's local corporate calendar has half-year results Transact investment platform owner IntegraFin.

By Elizabeth Winter, Alliance News senior markets reporter

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