The FTSE 100 <.FTSE> is seen falling on Friday, tracking weakness on Wall Street and retreating from fresh six-month highs, as investors awaited the outcome of Greece's debt talks and U.S. GDP data.
The UK benchmark looks set to shed 30 to 31 points, or 0.5 percent, according to financial bookmakers, after it advanced 72.20 points, or 1.3 percent, to 5,795.20 on Thursday, its highest close since July 29, but just short of the 5,800 resistance level.
Greece and its private creditors made progress in talks on restructuring its debt on Thursday, both sides said, and they will continue negotiating on Friday with the aim of sealing an agreement within a few days.
Athens needs a deal quickly to avert a chaotic default when a major bond comes due in March. Greece's creditors are demanding that the European Central Bank contribute to a deal to put the country's messy finances back on track.
U.S. growth figures, out at 1:30 p.m. EDT, are the main focus in terms of macro data on Friday, with economists estimating GDP grew at a 3.0 percent annual pace in the October-December period, according to the median forecast in a Reuters poll.
That would be a step-up from the third quarter's 1.8 percent rate and it would be the quickest pace since the second quarter of 2010.
Other data includes the final reading of the January Reuters/University of Michigan consumer sentiment survey, due at 2:55 p.m. EDT.
No significant UK economic data is scheduled for release on Friday.
UK stocks to watch on Friday are:
ROYAL BANK OF SCOTLAND
RBS cut its chief executive's 2011 bonus to 963,000 pounds ($1.5 million), heeding political pressure to curb pay at the part-nationalised bank while ignoring calls to axe the bonus altogether.
The global miner may push for a change in ownership of the massive Oyu Tolgoi copper and gold mine in Mongolia, which is two-thirds owned by Canada's Ivanhoe Mines
A federal judge said BP must indemnify Transocean Ltd
The FTSE 100 outsourcing firm is to cut at least 500 jobs in the UK as part of an overhaul of its management structure, the Financial Times reported.
UK high street retailers Clinton Cards
LONDON STOCK EXCHANGE GROUP
The company issues a trading update.
The software company issues a trading update.
The toy manufacturer issues a trading update.
The pubs group holds its annual general meeting.
The newspapers, magazines and books wholesaler holds its AGM.
(Editing by Erica Billingham)