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

UK 100 Index called to open +10pts at 7270, having retreated from 7280 overnight highs to intersecting support at 7260, however February’s rising channel continues to be valid following last week’s bounce from 7150. Bulls will be hoping that the 7260 mark holds to keep last week’s rally in check and warrant a further bounce towards 7300. Bears will be hoping for a breakdown from the same level for a potential retracement to 7220 or lower. Watch levels: Bullish 7280, Bearish 7250.

Calls for a positive open come after Wall Street completed its first Grand Slam - the four main indices all closing at fresh all-time highs - on Friday as US equities continue to rally in expectation of Donald Trump’s tax reform and a successful two-day Japan-US summit in Washington. This optimism, however, is being offset by rising geopolitical concerns following North Korea’s successful missile test on Sunday whilst a weaker Dollar in Asian trading weighs on the foreign earnings heavy UK 100 .

Asian equities continued where US stocks left off on Friday, with indices across the continent trading higher. Japan’s Nikkei closed 0.4% higher despite GDP data coming in slightly weaker than consensus as economists are optimistic that PM Abe’s stimulus is proving effective in keeping Japanese in positive growth territory. Australia’s ASX is 0.7% stronger thanks to continued outperformance from its material’s sector following Friday’s commodities rally.

Wall Street completed its first quadruple record close in two-months as the small-cap Russell 2000 caught up with its larger counterparts. The Russell outperformed, up 0.8% as US-focused businesses were buoyed on hopes of Donald Trump’s proposed tax reforms helping smaller companies, while the Dow Jones (+0.5%), S&P 500 (+0.4%) and Nasdaq (+0.3%) also closed at record highs.

Friday’s Crude Oil price rally has fizzled out in Asian trading, as news of OPEC’s record compliance is offset by yet another increase in the Baker Hughes rig count, with the number of US platforms now at its highest level since October 2015.

Gold is continuing to trade sideways as the equity rally remains in good spirit, however is holding above $1220 intersecting support as geopolitical tensions remain casting a shadow over global markets. A falling US Dollar in Asian trading is also adding to bullish sentiment, however a hesitance to invest in non-yielding assets within the global equity rally is capping gains.

With very little in focus today - all significant macro data for today has already been released - drivers are few and far between. As such, the performance of FX and commodities markets could provide some direction, whilst investors should keep a keen eye out for any news of US President Trump’s proposed tax reforms and further cabinet confirmations while the UK Parliament is on recess.

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

• London copper strikes 20-mth peak as supply worries swirl
• Britain's Co-operative bank puts itself up for sale
• European shares seen extending winning streak with eyes on Stada, BHP
• Genel Energy provides update on Miran and Bina Bawi fields
• Oil prices dip as markets stay bloated despite OPEC cuts
• Fidessa says FY pretax profit up 25% to £48.8m
• Oxford Biodynamics appoints Claudio Carini as an advisor
• National Express completes sale of c2c rail franchise
• Chemring wins a contract from the U.S. Army
• Grainger appoints John Kenny as chief operating officer
• Capita and Co – op Bank plc resolve contract dispute
• Eurotunnel's January passenger shuttle traffic figures edge up from last year
• Gold slips as dollar strengthens against yen after Trump – Abe meet
• Old Mutual receives new approaches for US asset management stake – FT