London stocks were set to edge up at the open on Wednesday following heavy losses a day earlier, as investors mulled the latest UK inflation data and looked ahead to key third-quarter earnings from US chipmaker Nvidia.
The FTSE 100 was called to open around 10 points higher.
Danske Bank said: "Nvidia's earnings report is set for release, serving as a crucial test of the sustainability of this year's rally in AI-related stocks, particularly as most heavyweight tech stocks have faced increasing pressure.
"While the surge has captured investor enthusiasm, concerns about stretched valuations and potential signs of a bubble persist. Meanwhile, market sentiment remains cautious as US equities continue their longest losing streak since August."
Nvidia's results are due after the close of US markets.
On home shores, figures from the Office for National Statistics showed the rate of inflation slowed slightly last month, adding weight to expectations the Bank of England may move to trim interest rates in December.
The consumer prices index rose by 3.6%, down from 3.8% in September.
Core inflation, which strips out more volatile energy, food, alcohol and tobacco prices, rose by 3.4%, down from 3.5% and in line with expectations.
The BoE has cut rates just three times this year, to 4%, despite sluggish economic growth, as it battles persistently sticky inflation.
CPI remains well above the BoE's long-term target of 2%. However, the rate-setting Monetary Policy Committee had expected it to reach 4% before falling back.
It also signalled at November's meeting that more cuts would be on the cards if inflationary pressures continued to ease.
Services inflation fell to 4.5% from 4.7% in October.
However, food and non-alcoholic drink prices picked back up. They rose 4.9% in October, up from 4.5% a month previously.
Grant Fitzner, chief economist at the ONS, said: "Inflation eased in October, driven mainly by gas and electricity prices, which increased less than this time last year following changes in the Ofgem price cap.
"The costs of hotels was also a downward driver.
"These were only partially offset by rising food prices, following the dip seen in September.
"The annual cost of raw materials for businesses continue to increase while factory gate prices also rose."
In corporate news, engineering firm Rotork unveiled a new £50m buyback as it reaffirmed full-year guidance.
The company said its performance in the four months to 31 October saw order intake rise 6% year-on-year with all three divisions ahead and particularly good growth in its chemical, process and industrial unit.
Water group Severn Trent announced that chief executive Liv Garfield is stepping down at the end of the year, and will be replaced by James Jesic, its capital and commercial services director and the managing director of its Welsh division.
"Having made a strong start to the largest ever investment programme, Liv and the board agree that this is the right time to transition to a new CEO," Severn Trent said.
The news came as the company delivered a 57% increase in pre-tax profits in the first half, as revenues rose 18%.
Elsewhere, Lloyds said it has bought London-based digital wallet provider Curve for an undisclosed sum.
"The acquisition of Curve is a strategic move to broaden and accelerate Lloyds Banking Group's digital transformation," it said.