UK 100 Index called to open +20pts at 7385, having broken above 7380 in the last hour thanks to GBP weakness and corporate results, taking it a step closer to a retest of 7397 record highs from the turn of the month. Bulls now likely want to see a break above 7400 for the absence of historical and psychological resistance. Bears likely want a drop back below 7380. Watch levels: Bullish 7400, Bearish 7375.

Calls for a positive open come in spite of a mixed showing for Wall St and minor losses for Asia overnight as looming central bank meetings and geopolitics keep investors on their toes. The UK Index outperforms thanks to Oil prices regaining poise, overnight macro data and FX moves after resilient data from China and a GBP pullback.

China data suggests a strong start to 2017 with acceleration in industrial production and investment growth countering slightly slower retail sales. This and continued supply disruption (Philippines, Chile, Indonesia) is buoying base metals which could give legs to yesterday’s Mining sector bounce.

The index is further buoyed by fresh Sterling weakness stemming from Brexit (looming Article 50, Scottish independence referendum) and expectations of the BOE turning more dovish on Thursday, while the Fed remains hawkish and following a less dovish tone from the ECB last week, something that can be vindicated by this morning’s confirmation of German CPI acceleration.

Japan’s Nikkei is underperforming despite revived interest in Energy as a combination of a further delay for Toshiba Q3 results and losses for real estate, telecoms and consumer stocks weigh. Australia’s ASX is the lone gainer, even if gains are very minimal, thanks to Energy and Mining as oil finds its footing and metals prices benefit from supply issues in some of the world’s key geographies.

UK 100 sentiment may be impacted by results from Antofagasta (ANTO) whose preliminary 2016 results show significant improvement in EBITDA margin (44.4% vs 28.2%) a dividend hike with further cost savings and lower CAPEX in 2017. Note Prudential (PRU) reports FY results at 8.15am.

US equity markets started the week mixed as the Trump administration revealed its solution to the Affordable Health Act. However, investors met the announcement with scepticism as independent reports suggested as many as 24m Americans could lose healthcare access. Consequently, the Healthcare sector weighed on both the S&P500 and Nasdaq indices, while the Dow Jones saw Intel at the back of the pack after announcing the takeover of Israel’s Mobileye.

Crude Oil is showing only marginal gains ahead of a key monthly production report from OPEC today, with ongoing concerns about rising US production still adding downside risk to the marketplace. A positive report showing high compliance could help to life Brent and US crude above their current respective levels of $51 and $48, although should the group’s output be higher than previous reports both benchmarks could be in danger of posting fresh 3-month lows.

Gold has continued to fall back from $1211 resistance after a failed challenge of the mark and a resurgent US dollar overnight. The price of the precious metal is holding just above the key $1200 level ahead of the start of the US Federal Reserve’s two day policy meeting, however further dollar strength could see the non yielding safe haven asset once again be at the mercy of the bears.

In focus today - with the UK Government ruling out triggering Article 50 for another two weeks(Dutch Election, EU anniversary) - is the return of top tier macro data. Eurozone Industrial Production (10am) is seen swinging back to positive territory in January while the yearly print continues to cool from November’s 10-month high. German ZEW Surveys (also 10am) will provide an insight into economic confidence in the Eurozone's engine room, with both Current Situation and Expectations readings recovering from February’s four-month lows.

This afternoon, US Producer Price Inflation (PPI) provides the penultimate inflation reading (CPI and Wages tomorrow) before the Fed’s monetary policy update tomorrow. The monthly readings (both headline and core) are seen retreating, although crucially remaining expansionary, while the yearly growth figures continue to accelerate.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.