City sources predict the FTSE 100 will open up 87 points from Monday's close of 5,898, following news of the last-minute compromise that was struck in the US to avert the so-called 'fiscal cliff'.

The House of Representatives approved the legislation, which will see taxes lifted on the richest US citizens.

While the majority of Democrats voted the bill through, the Republicans by-and-large did not, with 151 voting no, compared to the 85 who gave their support.

The Senate will now have to turn its attention to dealing with the issue of spending cuts, which the new bill delayed by two months.

Shortly after the bill was passed, President Barack Obama said: "Today's agreement enshrines a principle into law that the deficit must be reduced in a way that is balanced."

He added that the move was "just one step in the broader effort to strengthen the economy".

Back in the UK, and turning to company news, energy services giant John Wood Group said bosses Mark Dobler and Robin Watson had joined the board as executive directors. Mark Dobler is Chief Executive of Wood Group's GTS division and Robin Watson is Chief Executive of the PSN division. In December the firm reported that it expects to deliver good growth this year, with overall conditions in energy markets remaining 'favourable'.

A Royal Dutch Shell-owned drilling rig has ran around off the coast of Alaska after being caught in a storm. The Kulluk hit rocks on Monday evening at 21:00 off Kodiak Island, though its 18-member crew had already been evacuated, according to media reports. The vessel, operated by Noble Corp, was carrying 150,000 gallons on ultra low-sulphur diesel and 12,000 gallons of lubricating oil and hydraulic fluid, but there have been no reports of any spillage.

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