City sources predict the FTSE 100 will open four points above yesterday's close of 6,755.45, taking its lead from both Asian and US markets.
An unexpected drop in the US trade deficit spurred Wall Street stocks on Tuesday, sending the S&P 500
into positive territory for the first time in 2014.
The Commerce Department revealed a 0.9% month-on-month rise in exports to $194.9bn - the highest level in history - and a 1.4% fall in imports to $229.1bn, helping the seasonally-adjusted trade deficit fall by a whopping 13% $34.3bn in November.
Today will see the release of economic data that includes the Eurozone unemployment rate, German factory orders, US mortgage applications and US employment data.
The Eurozone unemployment rate is expected to remain below record high levels, while retail sales for the region are predicted to register a rise.
Craig Erlam, Alpari Market Analyst, said: "Things have improved significantly in the Eurozone in the last six months, with a number of countries, and the region as a whole climbing out of recession, confidence in the region growing as seen by the substantial improvement in the PMI readings, and two countries, Ireland and Spain, exiting their respective bailout programs.
"I wouldn't say things are looking rosy for the currency block, by any stretch of the imagination, but compared to this time last year, they're looking much better [...] The [unemployment] rate is expected to remain at 12.1% in November, but as long as we don't see a return to record high levels, I think this will be viewed as a positive result."
Over in the US later today, the ADP employment change figure will be released, which Erlam explained "should give us some insight into whether the improvement in the labour market seen in October and November continued into the end of the year, and whether the Fed was therefore right to reduce its bond buying programme in December".
In other news, a top City regulator has insisted that the appointment of Paul Flowers was not a mistake after facing tough questioning over his approval of the appointment of the now disgraced former Co-operative Bank Chairman.
Meanwhile, banking giant Lloyds is said to have moved another step closer to the sale of the government's stake.
In other company news, Sainsbury reported flat like-for-like sales in the third quarter as customers held back on spending ahead of the Christmas period. In a trading update for the 14 weeks to January 4th, the UK supermarket said total sales rose 2.5% in the face of challenging trading conditions.
After boasting of a strong finish to the year, FTSE 100 housebuilder Persimmon confirmed a major rise in 2013 revenues and sees further margin gains to be had. Revenues rose 21% to £2.1bn as volume growth accelerated in the second half to lift the yearly sales volume rise to 16%
Playtech, which creates and licences software and services for the online, mobile, TV and land-based gaming industry, has signed a deal with Holland Casino. The 'landmark' agreement was made in preparation of forthcoming regulations in the Netherlands, which Holland Casino holds a market-leading position, and as such is "best positioned to benefit from the introduction of online gaming regulations".
Housebuilding and construction firm Galliford Try said it anticipates making a record half-year profit as housing market conditions continue to improve. The group said it was encouraged by rates of sale and prices and is confident of delivering further good growth and improved returns this year and beyond.