Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires) 

UK 100 Index called to open +80pts at 5865 with a break above 14 Jan falling highs and a rising channel since 20 Jan encouraging to bulls this morning. Note technicals overbought, increasing scope for current rally to correct or reverse at the channel ceiling around 5875, if not before. Also keep an eye on momentum for a potential bearish divergence. Bullish 5900, Bearish 5700.

The positive opening call comes after a very good session in Asia and the US, with Asian bourses in particular posting gains of up to 6% (Nikkei). This attributed in part to an oil price bounce after Saudi oil minister said that current prices are ‘irrational’ (Irrational?!) while other drivers included US dollar strength after European markets lauded dovish ECB chat courtesy of Mario Draghi who is up for doing some more QE in March if everyone wants. That saw the EUR weaken, and Goldman cut its forecast to beyond EUR/USD parity.

While it’s often the case that once the phrase ‘bear market’ makes it into the mainstream press, many start buying, just be careful!

Draghi said it will (not might, WILL) be necessary to review and possibly reconsider the ECB’s position at its March meeting while refraining from going into the finer details.

Oil prices made an impressive bounce (ok, this time it was pretty awesome) to take both Brent and WTI back up above $30. However, note that oversupply still persists and a Saudi oil minister talking of irrational price levels does not a bull market make, especially when financial markets are not exactly known for their rationality (if they were rational, we’d all be millionaires).

Gold appears to be having difficulty breaking above $1110, but is still in an uptrend from late Dec. Today’s outlook a little bearish since we have a broad market rally. Plenty of support though - $1095, $1090, $1085, $1080 etc.. It’s reasonable to expect a bounce from at least one of those IF the equity market selloff resumes.

In focus today we have the fallout from more of Mario Draghi’s chit chat  (just about to take the stage now, 07:45), and a raft of PMI data from the Eurozone, Germany and the US, all seen a bit softer (if anyone even cares).

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UK Company Headlines: (Source: Reuters/DJ Newswires)

• Close Brothers Group's five – month loan book rises
• John Lewis weekly dept store sales up 15.7%
• London copper eyes biggest weekly advance since October
• WPP to buy majority stake in Germany's Conrad Caine
• Hammerson to buy Birmingham's Grand Central shopping centre for £335mn
• Oxford Instruments says confident in meeting FY expectations
• Workspace says total rent roll up 2.3% in qtr to Dec. 31