Sharecast - The FTSE 100 was called to open around 50 points higher at 7,792.
Investors will be digesting the latest data out of China, which showed that consumer price inflation slowed to 0.7% year-over-year in March from 1% in February, versus consensus expectations for it to be unchanged.
Meanwhile, PPI fell 2.5% in March after declining 1.4% the month before. Analysts had been expecting a 2.5% decline.
On home shores, the latest figures from the British Retail Consortium and KPMG showed that total retail sales rose 5.1% in March compared to the same month last year, down from 5.2% in February.
BRC chief executive Helen Dickinson said: "While the wettest March in over forty years dampened sales growth for fashion, gardening and DIY products, Mother’s Day brightened up sales for the month. Stores were given an extra boost, as last-minute shoppers dashed to their local high streets and shopping centres to purchase jewellery, fragrances and flowers."
In corporate news, Harbour Energy (LON:HBR) and BP (LON:BP) have signed a deal to develop the Viking carbon capture transportation and storage project in the Humber region of north-east England, using depleted offshore gas fields.
Under the terms of the agreement, Harbour will continue as operator of the project with a 60% interest and BP acquiring a 40% non-operated stake.
Viking has the potential to meet one third of the UK government's target to capture and store up to 30 million tonnes of carbon a year by 2030, Harbour said.