The FTSE100 is set to begin Friday on the back foot, with the key issue being whether the UK can avoid a technical recession.

Major Asian stock markets fell on Friday and were likely to end the week down as increasing U.S. Treasury rates fueled worries of a recession, while weaker-than-expected Chinese inflation data impacted on regional confidence.

The low findings suggested that the country's economic recovery was taking longer than predicted following the removal of most anti-COVID measures earlier this year. Given China's significance as a key commercial hub, the country's weakness has spread throughout the region.

Asian markets followed in the footsteps of Wall Street indices, which fell overnight due to a combination of disappointing results and recession worries. Following a series of hawkish indications from the Federal Reserve this week, markets were likewise divided on the course of US monetary policy.

However, higher-than-expected weekly unemployment claims statistics raised some concerns that the U.S. labour market was cooling following surprise strength in January.

The focus now shifts to consumer inflation data from the United States, which is coming next week, for additional insight into the world's largest economy.

According to the Office for National Statistics, the UK avoided a technical recession in the fourth quarter, but a 0.5% drop in December meant there was no growth between October and December (ONS).

The November number of 0.1% increase was left unchanged.

Between July and September, the economy contracted by 0.3%.

A recession is commonly characterised as two consecutive quarters of economic contraction.

In terms of production, the services sector slowed to flat output in the third quarter, owing to decreases in the education, transportation, and storage sub-sectors.

The FTSE100 is set to begin Friday on the back foot after yesterday's record-breaking performance, with the key issue being whether the UK can avoid a technical recession.

In corporate news, Victrex's trading statement and Lancashire Holdings' annual results are scheduled.

(investing.com, proactiveinvestorsuk.co.uk)