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

UK 100 Index called to open -10pts at 7095, having broken below 7100 overnight and the level having served as resistance since. This maintains a trend of falling highs since yesterday’s best, and extends the longer term downtrend from mid-month all-time highs that take the index back towards 7000. Bulls need to see a break above 7100 to overcome 24-hour falling highs. Bears want to see 7090 give way. Watch levels: Bullish 7105, Bearish 7085.

Calls for a negative open come in spite of a positive US finish as Asia struggles under the weight of a weaker USD after the Fed left policy unchanged and Trump, despite it sticking to its guns about further hikes this year. The Greenback is also hindered by concerns about President Trump’s style of governance breaking with traditional diplomacy.

Australia’s ASX is under the cosh from a stronger AUD derived from the weaker USD as well as a record Aussie trade surplus thanks to the commodity sector rebound. Japan’s Nikkei is struggling under the weight of a stronger Yen which has accompanied Gold higher amid some fresh safehaven seeking. Note Energy names weighing in the region.

Having rallied during US trading hours to overcome 2017 falling highs resistance, Crude Oil prices have been unable to overcome yesterday’s highs to maintain the ceiling of a its recent sideways range. Gold continues its uptrend from last Friday’s lows having completed a double top pattern, however has fallen back in early morning trade as the US Dollar weakens once again, this time as the Fed stands pat overnight.

In focus today will be the Bank of England ‘Super Thursday’. Not so much for any change in monetary policy at 12pm, rather what the Quarterly Inflation Report (QIR) and meeting minutes say about a weak GBP’s impact on policy outlook, given pressure on both consumer and producer pricing. Governor Carney chairs a press conference and Q&A at 12.30pm that could offer even more.

Between the BoE data dump and press conference we also hear from ECB President Draghi (12.15pm), although there’s no guarantee he comments on Eurozone monetary policy, down to speak at a Joint ECB/Bank of Slovenia conference to celebrate it’s 10th anniversary of adopting the euro. Note ECB colleagues Angeloni, Praet and Coeure also speak between 4pm and 6.45pm.

Today also sees the government publish its Brexit Bill, having survived a parliamentary vote last night. The bill now faces scrutiny from parliamentary committee and could see amendments. The House of Lords will debate the Bill from 20 Feb after parliamentary recess with Theresa May hoping to have it in law by 7 March to trigger Article 50 shortly after.

Data-wise, UK Construction PMI is seen falling back slightly from December’s 10/11-month high reading, however, remains in expansionary territory (watch UK Housebuilders), while Eurozone Producer Price Inflation (PPI) is seen accelerating both in monthly and yearly figures, with the latter jumping to above 1% for the first time since early 2013, adding to last month’s break above zero.

This afternoon’s US data consists of Non-Farm Payrolls warm ups Challenger Job Cuts and weekly Jobless figures, released alongside Q4 Non-Farm Productivity, seen falling back after Q3’s 1-year high whilst preliminary Q4 Unit Labour Costs are expected to advance on the previous quarter, suggesting the Trump reflation trade remains prevalent despite Tuesday’s Employment Cost Index disappointing.

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

• Vodafone says pressures in India and UK to weigh on earnings
• Avocet says seeking $11 – 14m financing to extend life of Inata mine
• Cranwick says Q3 trading was in line with expectations
• Glencore maintains 2017 full – year production guidance
• Glencore seeks trading halt for HK – listed shares
• Shell misses fourth – quarter estimates after $500m of impairments
• AstraZeneca faces falling 2017 profits as key drug data awaited
• Fund firm Aberdeen Asset Management hit by fresh outflows in the December quarter
• Reckitt Benckiser in talks to buy Mead Johnson for $16.7bn
• Australian miners still in earnings upgrade cycle -Deutsche Bank
• Deutsche Bank posts 1.9bn Q4 loss as legal bill weighs
• OPEC, Russia spare Asia oil supply cuts in fight to hold market share
• Rio Tinto receives approaches for last $1.5bn of coal assets – Bloomberg
• Gold hits over 1 – wk top as Fed keeps rates steady
• London copper simmers below $6,000 on spectre of supply delays