UK's FTSE 100 is poised to outperform European peers as energy shares continue to weigh on the index. BP and Shell have been among the biggest drags, with energy stocks declining sharply amid falling oil prices and profit warnings. Despite this pressure, the broader market has shown resilience, supported by defensive sectors.

Market participants are closely watching Bank of England policy moves, with expectations of a rate decision later this week. Traders have priced in a high probability of a 25 basis-point hike, though some speculate a pause could be on the cards given recent inflation data.

In corporate news, Unilever shares slipped after the consumer goods giant reported mixed earnings and warned of continued cost pressures. Meanwhile, AstraZeneca provided a bright spot, climbing after positive trial results for its cancer treatment pipeline.