City sources predict the FTSE 100 will open 20 points below yesterday's close of 6,449.27, ignoring decent gains seen in both the US and Asia overnight.
Upbeat corporate earnings and a bout of bargain hunting helped US markets put in decent gains on Tuesday as stocks recovered from their worst sell-off in eight months the previous session.
Economic data also came in ahead of expectations with factory orders declining less than expected in December.
"Factory orders fell by 1.5% in December; however, given that upside catalysts for the bulls are few and far between right now, this was taken as a positive as it beat expectations for a decline of 1.9%," said Brenda Kelly, Chief Market Strategist at IG.
Later on in the US, the ISM non-manufacturing composite is out along with weekly mortgage application figures and the ADP Employment report.
Following Monday´s shockingly weak ISM manufacturing report, traders will likely be on guard against any further weather-induced distortions in the data.
Nevertheless, even under normal conditions the ADP report often results in a notable pick-up in levels of intra-day volatility. Furthermore, should there by any negative surprise forthcoming that could affect expectations heading into Friday's monthly employment report.
Investors are closely watching indicators linked to the labour market at the moment in the aftermath of December's much weaker-than-expected reading on non-farm payrolls.
In the UK today data will be released on both the BRC Shop Price Index and Services PMI.
In this morning's company news, British Land revealed it has agreed to buy £41m of extra units in Hercules Unit Trust (HUT), a retail park property unit trust. The FTSE 100-listed company has also submitted an application to Schroder Property Managers, the manager of HUT, to purchase up to £35m of further units.
Hargreaves Lansdown hiked its interim dividend by 11% after registering record revenue and profit in its first half. Revenue totalled £158.4m in the six months to December 31st, up 13% year-on-year, while pre-tax profit rose 11% to £104.1m, helped by a 43% increase in assets under administration to £43.4bn compared with last year, with net business inflows up 70% at £2.8bn.
Wolfson Microelectronics posted a fourth quarter operating loss compared to a profit a year earlier, while revenue slipped as it battles against a volatile mobile phone market and a competitor's faster-than-expected transition to fourth generation smartphones. The group, which makes chips for smartphones and other electronic devices, posted an operating loss of $8.5m during the final quarter to December 29th compared to a $0.5m profit the same time a year earlier.
Student accommodation manager Unite Group has agreed to acquire a development site covering around one acre in central Aberdeen close to the university. The scheme, which is still subject to planning consent, is expected to have a total development cost of £20m and is expected to deliver development yield in line with the company's target returns of 9.5% - 10% yield on cost.
Results from drug maker GlaxoSmithKline are due to be released at noon, and according to UBS will show earnings per share of 32.5p for the fourth quarter.