At 0709 GMT, the FTSE 100 index was down 0.72 points, or 0.01 percent at 5,671.61, having closed 0.1 percent lower on Monday when concern about the outlook for corporate earnings and weak US retail sales data kept investors cautious.

Fed chairman Bernanke will present his latest monetary policy report to Congress on Tuesday and Wednesday against a background of lacklustre growth at home and a festering sovereign debt crisis in Europe that is increasingly preoccupying US policymakers.

Gains in energy stocks and banks provided the underlying support for the blue chips on hopes for fresh stimulus measures, with Libor rate-scandal hit Barclays the top performer, rallying 1.8 percent.

Plumbing supplies group Wolseley was the biggest individual faller, shedding 3.9 percent as it said it has decided to explore strategic options for the future of its businesses in France, with difficult market conditions in continental Europe continuing.