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

UK 100 Index called to open +10pts at 7380, continuing to test recent highs resistance at 7385. Bulls like the fact the index has held above 7360 since late yesterday, pining after a break above 7385 to open the door to 7400+. Bears are focusing on the difficulty in delivering a breakout, on the lookout for a drop back below rising lows support at 7360. Watch levels: Bullish 7390, Bearish 7360.

Calls for mild gains come after a mixed finish on Wall St was bettered by a positive session in Asia overnight, where Hong Kong outperformed thanks to financials. Gains for oil, iron ore and copper have helped sentiment even if precious metals remain under the cosh as Fed chair Yellen’s testimony looms tomorrow and the Republicans try again to salvage a healthcare bill to unlock the door to delayed Trump stimulus, all the while inappropriate Russian links hang over the administration.

UK 100 corporate news today includes Marks & Spencer’s Q1 trading update suggesting weaker than expected food and clothing sales, but FY trading expected in-line with guidance. Pearson has sold a 22% stake in Penguin Random House for $1bn and announced a £300m share buyback. TUI has completed the sale of its stake in Hapag-Lloyd, raising a total of €407m to be reinvested, strengthen the balance sheet and help with its focus on tourism.

Japan’s Nikkei is higher thanks to consumer, telecoms and tech names, as well as fresh Yen weakness. Australia’s ASX is flat despite gains for raw materials on the back of metals prices as Energy remains hampered by lower oil prices and mixed macro data.

US equity markets closed around breakeven on Monday, with the exception of the Tech-focused Nasdaq as large-cap Tech names extended their rally from Friday. Amazon and Tesla were the major movers, the former rallying ahead of its Amazon Prime day while investors welcomed photos of the latter’s new model. Tech also led the S&P500 higher, albeit marginally, while losses for Wal-Mart offset Boeing strength on the Dow Jones as it closed just shy of flat.

Crude Oil prices are holding gains made from their rally off yesterday morning’s lows overnight, with Brent crude holding above $47 while the US benchmark holds above $44.50. More chatter is expected ahead of OPEC and non-OPEC producers’ 24 July extraordinary meeting, while investors also react to forecasts that US production could increase fourfold by 2020.

Gold has recovered from yesterday’s 4-month low reading, supported by emerging rising lows at $1210, however has been unable to overcome support-turned-resistance at $1215 overnight. A rebounding US dollar adds to the bearish melting pot for the precious metal, however it could remain rangebound ahead of US Fed Chair Janet Yellen’s two days of testimony to Congress which begins tomorrow afternoon.

With another light data docket expected today, in focus will be the range of central bank speakers today. Chief Economist Haldane (11am) is a panellist at the “Essentials of Numeracy” launch event, while text is released for colleague Broadbent’s (12pm) speech at the Scottish Council for Development and Industry in Aberdeen. This afternoon, the ECB’s Coeure (1pm), influential Fed dove Brainard (5pm) and German Chancellor Merkel (6pm).

Today’s limited data releases include Italian Industrial Production (9am) moving back into growth in May, US NFIB Small Business Optimism (11am) remaining at 104.5 for a third straight month, and US JOLTS Job Openings and Wholesale Inventories (3pm), the former seen cooling after April’s highest ever reading while the latter is expected to be confirmed at 0.3% in May.

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

• M&S expects move towards positive like – for – like clothing sales towards end of yr, says recovery “on track” as full – price sales rise
• Pearson to sell 22% stake in Penguin Random House to Bertelsmann
• UK's CMA says competition concerns raised on one route as Firstgroup operates GWR franchise
• Galliford says FY 2018 outlook unchanged
• Cairn says encountered oil in South Fan prospect offshore Senegal
• Price comparison website Gocompare sees 22% jump in H1 profit
• Citigroup hires Barclays's Rolfe for Japan hedge fund business – Bloomberg
• Grafton Group says H1 trading better than anticipated
• UK grocers: Exane says "worst looks to be behind us"
• Premier Asset Management Q2 AUM up by £231m to £5.84bn
• Arena Events Group to apply to float on London Stock Exchange
• Gold falls slightly as dollar, equities gain ahead of Yellen testimony
• Oil rises on firm short-term demand outlook; overall market still weak