The FTSE 100 is seen around 1.5 points lower at 7,726.58 according to the spread betting firms, ahead of trading statements from supermarket chain Sainsbury's and housebuilder Taylor Wimpey.
Traders will also be keeping a close eye on the latest manufacturing and industrial production data for November, due this morning.
In Asia, the Nikkei 225 fell after the Bank of Japan signalled a shift towards tightened fiscal policy.
Across the pond, US markets recorded the best start to a year in almost three decades as investors remained optimistic heading into the corporate earnings season.
In the US overnight, the Dow Jones gained 102.80 points (0.41%) to close at 25,385.80.
The broader-based S&P 500 added 3.58 points (0.13%) to end at 2,751.29 and the NASDAQ gained 6.19 points (0.09%) to 7,163.58.
Meanwhile, Asian markets were mixed this morning.
The Nasdaq was down 61.79 points at 23,788.20, the Hang Seng was 92.24 points (0.30%) higher at 31,103.65 and the Shanghai Composite fell 3.38 points (0.10%) at 3,410.52.
Crude oil prices broke out above a key resistance level to more than three-year highs as supply issues come to the fore.
At around 6:15am, West Texas Intermediate was up 0.78% at $63.45 per barrel and Brent was 0.51% higher at $69.17 per barrel.
Gold was 0.26% lower at $1,310.30 an ounce, silver was down 0.16% and copper was 0.33% higher.
Trading Announcements: Big Yellow, PageGroup, Quiz, Sainsbury's, Ted Baker, Tullow Oil and Taylor Wimpey.
Interim Results: SuperGroup.
Final Results: Shoe Zone.
AGM's / EGM's : Camper & Nicholsons Marina Investments, Tharisa and Focusrite.
Economic Releases: Monthly manufacturing and industrial production figures, the goods trade balance, monthly construction output and the latest NIESR GDP estimate.