London stocks were set for a muted open on Tuesday as investors eyed the start of US earnings season and the latest US inflation reading.
The FTSE 100 was called to open around five points lower.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "Today, the US releases its latest CPI data, while big banks kick off earnings season, with JPMorgan reporting Q4 results - just a day after Trump suggested credit-card interest rates should be capped at 10%, a comment that sent related stocks sharply lower.
"While last year was strong for trading and deal-making revenues, investors will focus on banks' economic outlook, loan-loss provisions, and views on AI productivity, credit quality, margins and capital deployment. Their guidance could set the tone for earnings season, as investors look for proof that Big Tech deserves its elevated valuations."
On home shores, investors will be mulling the latest figures from the British Retail Consortium, which showed that retail sales underwhelmed in December as consumers refrained from splashing out until the January sales.
According the latest BRC-KPMG retail sales monitor, food sales increased by 3.1% in the five weeks between 30 November and 3 January. That compared to growth of 1.7% in December 2024. However, non-food sales - which rose 4.4% a year previously - fell 0.3%.
As a result, UK total retail sales increased by just 1.2% year-on-year last month, compared to growth of 3.2% in December 2024. The uplift was also below the 12-month average growth of 2.3%, and lower than November's 1.4% increase.
It was, however, better than expected, with consensus for a more modest 0.6% rise.
The retail sales monitor echoed festive trading updates from individual supermarkets, which largely showed strong demand for festive food and drink tempered by more modest sales across general merchandising.
Helen Dickinson, chief executive of the British Retail Consortium, called it a "drab Christmas" for retailers.
She continued: "While food sales rose on the back of ongoing food inflation, non-food sales fell flat in the run up to Christmas, with gifting items doing worse-than-expected.
"Many people were clearly holding out for discounts, with the last week showing significant growth off the back of Boxing Day and beginning of the January sales."
Sarah Bradbury, chief executive of retail consultancy IGD, said: "December saw record Christmas grocery sales and a welcome boost in shopper confidence, as often happens during the festive season.
"However, minimum volume growth highlights that the food and drink industry is still under pressure; nearly half of shoppers told us they were more worried about the cost of Christmas this year."
Food price inflation has fallen back from recent highs. Data published by Worldpanel by Numerator last week showed inflation easing to 4.3% in December from 4.7% a month previously.
However, it remains high by historic standards, while consumer sentiment remains weak, undermined by ongoing economic uncertainty and heightened geopolitical risk.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: "It remains a challenging time for retailers, with consumers cutting back on spending due to higher household bills.
"Any discretionary spend is being prioritised, particularly toward holidays and home improvements."
In corporate news, housebuilder Persimmon said it expected annual earnings to be at the upper end of forecasts after a bigger-than-expected rise in home completions. It added that the start to 2026 had been "encouraging" after a Boxing Day marketing campaign against a challenging market.
Completions for calendar 2025 rose 12% to 11,905, with average selling prices up 4%. Persimmon is guiding for underlying profit before tax of £415m to £440m, according to a company compiled estimate.
Whitbread reiterated its full-year outlook after solid demand for its hotels during the third quarter helped offset weaker food and drink sales.
The blue chip owner of Premier Inn and Brewers Fayre, among other, posted a 2% increase in group sales in the 13 weeks to 27 November, to £781m.
Within that, accommodation sales sparked 4% - supported by a 16% jump in revenues in Germany - while food and beverage fell 3%.
Coupled with current trading in line with expectations and improved cost efficiencies, Whitbread said it remained "confident" in its full-year outlook.
On a like-for-like basis, third-quarter sales rose 3%.
Rentokil Initial said it has appointed Mike Duffy as chief executive and an executive director with effect from 16 March. He will join the company on 16 February as CEO designate.
Duffy succeeds Andy Ransom, who will step down as CEO on 16 March and will continue to work with the group to ensure a smooth transition ahead of the annual meeting in May.
US citizen Duffy is currently CEO of OnTrac, an American logistics company specialising in residential last-mile deliveries for e-commerce and direct-to-consumer brands.