A strong opening is anticipated for UK stocks ahead of US inflation data

After encouraging economic statistics sent US stock prices higher, the FTSE 100 is predicted to open higher.

News that consumer confidence in the UK has increased to its highest level in two years, according to GfK, will also help to lift sentiment.

When the US delivered its most recent GDP report, the data was as good as it gets at the moment.

During the fourth quarter, economic growth continued as inflation pressures decreased as measured by the personal consumption expenditures index.

The PCE data, which are the favoured inflation indicator of the Federal Reserve, will be revealed later today.

The majority of Asian equities fell on Friday as the stimulus-driven rally in Chinese shares faltered, while the Nikkei 225 in Japan fell farther from its 34-year high as increasing speculation of a Bank of Japan shift encouraged more profit-taking.

Following several hawkish comments from the BOJ, particularly Governor Kazuo Ueda, Japanese stocks began to decline. Although the bank will continue to adopt a very dovish stance in the near future, Ueda stated that the ultra-low interest rates will eventually come to an end, particularly when inflation begins to approach the bank's 2% annual objective.

This idea was reinforced on Friday by softer-than-expected inflation statistics out of Tokyo, which showed core inflation slipping below 2% for the first time in more than 20 months.

Other Asian markets were mixed. Stocks in Southeast Asia saw sharp losses, with Indonesian markets leading the way with a 1% drop.

(Sources: investing.com, proactiveinvestors.co.uk, reuters.com)