City sources predict the FTSE 100 will open down two points from Friday's close of 6,264, as investors try to determine whether the rally seen in UK markets since the start of the year has any more left in the pot.

US stocks rose on Friday after unexpected data showed that the nation's trade deficit contracted by more than had been expected.

The Department of Commerce released data showing the trade deficit had fallen almost 21% in December to $38.5bn, marking the biggest drop in four years, as exports rose and imports softened.

The positive news was slightly dampened, however, by the release of data from the Commerce Department showing a 0.1% decrease in companies´ stockpiles.

The majority of Asian markets are closed today for the Chinese New Year festivities.

No macroeconomic indicators are slated for release today in the UK.

In company news, industrial project management and construction group Wood Group has won a contract for an offshore oil & gas production facility in the Norwegian part of the North Sea. The contract, awarded to Wood Group Mustang (WGM) by Singapore-based peer SMOE, will see the company provide detailed engineering and design for the offshore plant that will be operated by Det norske.

Defence and aerospace specialist Rolls Royce has been awarded a contract worth 97.3m pounds from the US Air Force. Under the MissionCare contract, Rolls Royce will provide sustainment services for the Rolls-Royce AE 2100 engines, as well as the nacelles and propellers on the US Air Force C-130J fleet.

Trading systems developer Fidessa said financial market conditions in 2012 were more difficult than expected as it reported unchanged profit and revenue for the year. Revenue fell 1.0% on a constant currency basis to £278.6m for the year ended 31st December 2012. Equally, adjusted pre-tax profit fell 1.0% to £42.7m during the period.

Analysts at Citi have upgraded their view on shares of Thomas Cook to neutral from sell.

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Fidessa Group (FDSA) share price
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