Disappointing retail sales in the UK saw markets pull back from a 13-year highs on Wednesday morning while traders kept a close eye on central banks around the world.

Markets pulled back from new 13-year highs on Wednesday morning as traders turned cautious ahead of statements from central banks in the UK and US.

City sources predict the FTSE 100 will open down 11 points from yesterday's close of 6,804, after it yesterday smashed through the 6,800 mark, just 130 points short of its all-time high, not seen since 1999.

Well-received results from a number of FTSE 100 heavyweights and a sharp drop in consumer-price inflation in the UK lifted London's benchmark index to fresh multiyear highs on Tuesday.

Homeserve shares were rising strongly after the group said it is confident it will return to modest growth in 2014/2015. The group said it has clear Sales and Marketing plans for increasing both customer acquisition and retention and expects UK customer numbers to stabilise at around 1.9m from March 2014.

Cruise ship operator Carnival, the world's largest, took a hit after it issued a brutal profit warning overnight for its full-year earnings per share, primarily as a result of lower net revenue yield expectations due to its current cruise ticket pricing.

The main US equity market averages are now being called to start the session ever so slightly higher, up by approximately 0.1% each one.

Stocks held on to 12-year highs on Tuesday morning as a sharp drop in consumer-price inflation lifted the outlook for the UK economy.

Markets were trading within a narrow range on Tuesday morning after finishing at 12-year highs the day before, as traders consider how much further the impressive year-to-date rally has to go.

City sources predict the FTSE 100 will open down seven points from yesterday's close of 6,756, having hit a 13-year high on Monday.

The FTSE 100 managed to close Monday's session moderately higher, albeit at 12 year highs, after rising by 33 points to the 6,756 point mark.

Transport firm FirstGroup led the fallers after cancelling its final dividend as it restructured its balance sheet and refinanced after a year in which operating profits halved. In results announced two days earlier than scheduled, the company announced a three-for-two rights issue as well as the resignation of its Chairman Martin Gilbert.

Royal Bank of Scotland was in the lead after Numis raised its target price from 308p to 410p, which upgrading the stock to buy.

The FTSE 100 had erased its early-morning gains by Monday lunchtime, as strong performances by easyJet and RBS were offset by heavy falls in the mining sector.

London's benchmark index was trading at levels not seen in over a decade on Monday morning, boosted by record closing prices in the States on Friday on the back of an improved outlook for the global economy.

City sources predict the FTSE 100 will open up 19 points from Friday's close of 6,723, which would see it jump past 2007 highs of 6,732 after the US Dow Jones and S&P 500 benchmarks reached fresh record closing prices at the end of last week.

The FTSE 100 rallied in afternoon trade after some better-than-expected economic data from the States, pushing the index to new five-and-a-half-year highs.