The FTSE 100 <.FTSE> index was seen opening up around 40 points, or 0.7 percent, on Friday, according to financial bookmakers, rallying in tandem with gains on Wall Street and in Asia, encouraged by a lack of any further bad news on the euro zone debt crisis.

Italy, the latest euro zone nation to come under pressure in the bond market, moved closer to a national unity government on Thursday, while its treasury managed to sell one-year bills at a yield below 7 percent -- the threshold investors believe renders its debt burden unsustainable.

Italy's Senate was set to vote on Friday for austerity measures demanded by the European Union to ease tensions surrounding the country's debt pile.

Britain's blue-chip stock index closed down 15.56 points, or 0.3 percent, on Thursday at 5,444.82 led lower by falls in riskier assets such as commodity and banking stocks.

But U.S. blue chips <.DJI> gained 1.0 percent on Thursday as investors latched onto positive corporate and economic news, in the absence of a clear worsening in Europe's debt crisis.

And Asian equities pushed higher on Friday, with MSCI's broadest index of Asia Pacific shares outside Japan <.MIAPJ0000PUS> up around 1.2 percent, clawing back some of the losses from a sharp sell-off in the previous session.

On the economic front, British wholesale inflation numbers for October will be released at 9:30 a.m., with PPI input prices seen down 0.1 percent on the month, and PPI output prices seen up 0.2 percent.

Across the Atlantic, November's preliminary Reuters/University of Michigan consumer sentiment index will be released at 1455 GMT, with a reading of 61.5 forecast, up from 60.9 in October.

The U.S. bond market and government offices will be closed on Friday for Veteran's Day, although the U.S. stock market will remain open.

UK stocks to watch on Friday are:

ROLLS-ROYCE

The defence contractor issues a trading update.

SPECTRIS

The engineer issues a trading update.

HORNBY

The model railways and Scalextric cars firm reports first-half results.

CARRS MILLING INDUSTRIES

The food producer posts full-year results.

T CLARKE

The group issues a trading update.

GALLIFORD TRY

The housebuilder holds its annual general meeting.

(Reporting by Jon Hopkins; Editing by Dan Lalor)