FTSE 100 <.FTSE> index is seen opening up by 15 points, or 0.3 percent higher on Friday, according to financial bookmakers, extending the previous session's advance in tandem with overnight strength for equities on Wall Street and in Asia as concerns over the euro zone debt crisis ease.
Market sentiment was also supported by the European Central Bank's surprise rate cut of 25 basis points on Thursday, the first meeting under new president Mario Draghi.
U.S. blue chips <.DJI> gained 1.8 percent on Thursday, and the MSCI Asia Pacific ex-Japan <.MIAPJ0000PUS> rose 3.1 pct on Friday, lifted by hopes Greece will abandon a proposed referendum on severe austerity measures which are needed to obtain a crucial European Union bailout, agreed last week.
Greek Prime Minister George Papandreou bowed to cabinet rebels and agreed to step down and make way for a negotiated coalition government if his Socialist lawmakers back him in a confidence vote on Friday, raising hopes for a political consensus on the EU rescue framework.
However, at the end of a turbulent week, gains will be limited in London as investors will remain cautious ahead of that Greek government confidence vote.
Investors will also be nervous ahead of the latest U.S. jobs report.
October U.S. non-farm payrolls, due at 1230 GMT, are forecast to rise by 95,000, after a 103,000 increase in September, and the unemployment rate is seen static at 9.1 percent.
No major UK economic data will be released on Friday.
The UK blue chip index closed up 61.54 points, or 1.1 percent on Thursday to 5,545.64, continuing to recoup sharp losses of more than 5 percent sustained earlier in the week following the shock from the Greek referendum plan.
Technical analysis of the UK blue chip index was still cautious.
Combining last week's top at 5,747.30 to this week's low at 5,338.40, the current upside target zone is 5,542.85 to 5,591.10, said James A. Hyerczyk, analyst at Autochartist
Thursday's high at 5,564.54 and close at 5,545.64 were both over the 50 percent level of this target zone. This puts the market in a position to rally further. Any hesitation to move higher in this zone could drive bullish traders out. This will set up the market for the start of another move lower. Needless to say, the index has reached a critical juncture which could dictate its direction over the next couple of weeks, Hyerczyk added.
UK stocks to watch on Friday are:
ROYAL BANK OF SCOTLAND
The bank issues a third-quarter trading update.
Banks must accept responsibility for past mistakes and show how they can contribute to society and economic growth or they could face more public unrest, Bob Diamond, chief executive of Barclays
Rio Tinto Chairman Jan du Plessis said that China's economic growth is visibly slowing, but it would remain fairly resilient to even quite a sharp correction in developed economies, in a presentation to business leaders in Sydney.
Rolls Royce is aware of the engine fault in a Qantas QAN.AX A380 aircraft and is working closely with the airline to provide it support, a spokesman for the British company said on Friday.
SMITH AND NEPHEW
The orthopaedics groups posts third-quarter results.
The insurer reports third-quarter results.
The engineer issues a trading update.
MILLENNIUM & COPTHORNE HOTELS
The hotels operator issues third-quarter results.
The engineering group issues a trading update.
The discount airline issues October traffic numbers.
The bioplastics firm issues a trading update.
The vetinary drugs firm issues an AGM trading update.
(Reporting by Jon Hopkins)