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

UK 100 Index called to open -20pts at 7285 (ex-div -28pts), testing overnight lows after twice failing to overcome 7300. This could result in a bearish double-top back to 7270 which sees the index breach an imperfect February uptrends support at 7280. Bulls looking for a break back above 7285 to rekindle optimism. Bears desire a test of yesterday’s 7270 post-close lows. Watch levels: Bullish 7285, Bearish 7270.

Calls for a negative European open come in spite of another record stateside close and global equities attaining their best since May 2015, still buoyed by hopes of Trump reflation, tax cuts, bank deregulation and US monetary policy normalisation and decent US data prints helping out too.

After rallying on US rate hike hopes, a USD pullback from 1-month highs has delivered FX strength elsewhere producing a mixed bag for Asian equities overnight, the Yen holding back Japan’s Nikkei along with persistent weakness for Toshiba.

Australia’s ASX is higher after decent jobs data and oil prices finding their feet despite yet another US inventory build and production increase (pattern developing? Short covering? OPEC cuts?). Miners supported by base metals holding up, precious metals even rallying on a combination of weaker USD and technicals (bullish flags). China and Hong Kong equities outperform without clear drivers.

US equity markets closed at record highs for the fifth day in a row as investor optimism continues to build, with yesterday’s drivers including much stronger than expected inflation and retail sales data, tax cut hopes, Fed Chair Yellen reiterating her hawkish outlook and an eruption of bullishness in Healthcare as a leading fund manager took a $3.5bn stake in Dow component Procter & Gamble. This helped the Dow Jones strengthen by 0.5%, a mark mirrored by the S&P 500, while the Nasdaq and Russell 2000 outperformed, up 0.6% and 0.7% respectively.

Crude Oil prices are beginning to tick lower this morning, having held flat overnight despite a larger than expected build in US Crude inventories that initially sent prices higher before paring gains shortly afterwards. Both US and Brent crude remain hampered by week long falling highs resistance, with the former benchmark back below $53 while Brent holds above $55.50.

Gold is trading marginally higher this morning having fallen from overnight highs, as a weaker US dollar boosts demand for commodities. Having briefly touched $1237 while the dollar was at its weakest level before paring gains, the precious metal has now found support at $1233 intersecting support, with further movements in FX space likely to drive investor sentiment today - as has been the case throughout the week.

In focus today, on a light day for macro data, will most likely be the plethora of European speakers while the meeting of G20 Foreign Ministers takes place in Bonn. The latter will likely provide an ongoing commentary throughout the day concerning recent major geopolitical events - North Korea, Brexit and Trump - as messrs BoJo (UK), Rex-T (US) and their Russian counterpart Lavrov meet for the first time.

Other highlights include German Chancellor Merkel and Canadian Prime Minister Trudeau at a joint conference (coinciding with European Parliament approving the EU-Canada trade deal yesterday), the ECB’s Nowotny and Coeure shortly after the release of the ECB Minutes from January’s policy meeting at 12:30pm, while EU President Juncker and the Fed’s Williams both speak after the European market close.

Datawise, today is limited to a single dump of US data at 1:30pm, with January Housing Starts and Building Permits seen flat, Jobless Claims (Initial forecast higher, Continuing expected lower) and the Philly Fed Business Outlook (Feb) falling back to 18 from January’s 3-year high of 23.6.

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

• Laura Ashley sees FY net pre-tax profit below market expectations
• Insurer Lancashire reports lower full – year profit
• Cobham takes charge on troubled Boeing tanker programme, cuts guidance
• UK's CMA to look into Heineken, Punch Taverns deal
• Lancashire Holdings reports lower FY pretax profit
• Coca–Cola HBC lifts full – year profit on lower revenue
• LSE Group updates on aggregate dividend
• Airbus: no immediate comment on Austrian Eurofighter lawsuit
• BoE proposes new approach to calculating interbank benchmark rate
• Wizz Air to open new UK base at London Luton
• Russia's Rosneft starts drilling first exploration well in Amazon
• Vectura achieves £9m royalty cap from GSK's Ellipta
• Capgemini sees no major impact from Brexit, eyes small – scale acquisitions
• GM's Opel, Peugeot lagging rivals in strong European market – ACEA
• London copper firms on spectre of protracted disruptions
• Gold prices rise as dollar gives up gains
• Oil prices steady on OPEC cuts, but record US fuel stocks weigh