London pre-open: Stocks seen higher on positive US cues

The FTSE 100 is seen starting 34 points higher than Thursday’s close at 6,047.

Still, CMC Markets’ Michael Hewson said was it was “touch and go” as to whether equities will be able to finish higher for the second week in succession.

“As we come to the end of the month, the same concerns that were dragging on sentiment a couple of weeks ago haven’t gone away, however there is a rising belief that the potential for further imminent US rate rises has diminished quite considerably.

“Today’s and the weekend focus is likely to be on the upcoming G20 meeting in Shanghai coming at a time when concerns about the Chinese economy have roiled global markets.

On the data front, there are no major UK releases so eyes will be on the US, where the second release of fourth quarter GDP is at 1330 GMT, along with the goods trade balance. University of Michigan consumer sentiment, personal income and spending and the PCE deflator are all at 1500 GMT.

RBS narrows full year loss

Royal Bank of Scotland has confirmed it made a £1.98bn loss for 2015, down from a £3.47bn loss the previous year.

The FTSE 100 bank, which warned investors in January it would make a loss, said elevated restructuring costs of £2.93bn made an impact as the bank's repositioning accelerated.

Litigation and conduct costs also increased 62% to £3.57bn including £2.1bn of additional provisions for mortgage backed securities litigation in the US and an extra £600m of provisions relating to PPI.

“We ended the year a simpler, stronger bank with a business anchored squarely in the UK and Ireland, focused on retail and commercial markets,” said chief executive Ross McEwan.

BHP Billiton has denied it has reached a settlement with Brazilian authorities over the Samarco mine disaster.

In early November, a tailings dam burst at the mine in Brazil's Minais Gerais region, killing 19 people in the resulting mudslides.

The FTSE 100 company, which holds a 50% stake in the mine , said on Friday that significant progress has been made in negotiations with the Brazilian authorities.

But the company denied press speculation that it has reached a settlement, saying it is still hopeful one will be reached.

Sales at publisher Pearson declined 2% in underlying terms during the 2015 calendar year, it announced in its preliminary results on Friday, to £4.47bn.

The company cited good growth in Pearson VUE, Connections and Wall Street English in China, but that was more than offset by declines in the US Higher Education, UK Qualifications and South Africa sectors.

Pearson made an adjusted operating profit - also down 2% in underlying terms - though adjusted earnings per share grew 5% to 70.3p, reflecting lower interest and a lower tax rate of 15.5%.

The firm's board proposed a final dividend level with last year, at 34p, taking total dividends for the year to 52p.