London pre-open: UK stocks to edge higher after record finish on Wall Street

UK stocks are expected to open in positive territory on Friday following two days of losses, tracking gains on Wall Street as indices set new record highs.

City sources predict the FTSE 100 will open 17 points higher than Thursday's close of 6,678.9.

Both the Dow Jones Industrial Average and S&P 500 set new all-time highs on Thursday as concerns about weaker growth overseas - manufacturing in the Eurozone and China specifically - were overshadowed by some decent US economic data.

"Once again some encouraging economic data has kept investors viewing the US economy through the prism of a glass half full," said analyst Michael Hewson from CMC Markets.

"[Recent data] points to two out of the three trading blocs in the world struggling to recover, […] with the only question on most people’s lips being how long can the US maintain its current progress," he said.

Friday is expected to be a fairly quiet day in terms of economic data, though many will be focusing on events in Greece as prime minister Antonis Samaras puts his proposed budget to the president of the parliament.

European Central Bank president Mario Draghi and Bundesbank head Jens Weidmann are also scheduled to speech at the latest European Banking Congress in Frankfurt.

Stocks to watch

European aircraft maker Airbus has won a deal to supply 50 aircraft from Delta Air Lines, with Rolls-Royce to supply engines and support worth $5bn. Rolls Royce confirmed late on Thursday that it had won the $5bn order for Trent engines and provision of its long-term TotalCare service support from Delta Air Lines to power 50 new aircraft.

Oil and gas group Ophir Energy has confirmed details of its possible takeover offer for UK-listed peer Salamander Energy, valuing the company at around £300m. In a joint announcement, the parties announced the proposed terms of the share-exchange deal, which comes at a 44.5% premium to Salamander's share price prior to its initial statement in October confirming the talks.

Transport and energy company Stobart Group has sealed a deal to build a £110m combined heat and power (CHP) biomass plant at its site in Widnes in north-west England as well as a 16-year index-linked fuel supply agreement.