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

UK 100 Index called to open flat at 7500, holding yesterday’s break above 7475 to extend the recent uptrend and reversal from recent 7279 lows. Bulls need a break above 7505 overnight highs if they want to regain November’s 7590 peak. Bears need a breach of rising support at 7480, if not yesterday’s 7475 breakout. Watch levels: Bullish 7505, Bearish 7480.

Calls for a flat start comes as no surprise ahead of a major central bank update (Fed today, ECB and BoE tomorrow tomorrow), and despite both a mixed session in Asia overnight and Trump’s Senate majority taking a hit as the Democratic candidate won an Alabama senate election for the first time in 25 years. As a result, beware a weaker USD weighing on UK blue-chips by way of a stronger reciprocal GBP while Oil prices off their highs may also hinder.

In corporate news, TUI says FY revenues beat, net profit falls, winter bookings in-line, extends 10% underlying EBITA growth guidance to FY 2020. British American Tobacco confident of FY 2017 earnings growth. Lonmin completes acquisition of Pandora. Senior wins five-year contract with Spirit AeroSystems. Intertek buys US Acumen Security ($6m revenues) for undisclosed sum. Safestyle sees FY 2017 profit below expectations, lowers 2018 guidance.

Dixons Carphone H1 pre-tax profits fall; CEO says mobile division performance needs change. Bovis Homes deputy Chairman Alastair Lyons to retire in May. Wood Group says no material developments in internal investigation into historical engagement with Unaoil. Purplebricks upgrades FY revenue guidance. Serco signs definitive Business Purchase Agreement to acquire portfolio of selected UK health facilities management contracts from Carillion.

In focus today will be the final 2017 monetary policy update from the US Federal Reserve (7pm) and of course Janet Yellen’s final press conference as Chair (7:30pm), before handing over the reins to colleague Jay Powell. With a rate hike all but priced in (100% according to Fed fund futures), meeting the Fed’s target for three rate hikes this year, investors will instead be closely scrutinising future projections via the central bank’s famed ‘dot plot’ chart.

Data-wise, UK Unemployment (9:30am) is expected to drop to a fresh 42-year low of 4.2%, while Average Earnings (incl. bonus) accelerate to a 2017 high of 2.5% (still shy of inflation, which hit a new multi-year high of 3.1% yesterday) while the ex-bonus print holds firm at 2.2%. Eurozone Industrial Production (10am) is expected flat in October after a negative September, with no change to the annual pace of growth.

This afternoon, just hours before the US Fed makes its policy decision, headline US Inflation is forecast to have picked up in November, although the core metric likely stayed put at 1.8% just shy of the Fed’s 2% target. As always, Hourly Earnings may garner more attention.

Events and Speaker-wise, the Commons committee debate on Brexit (11:30am onwards) enters its seventh day after Prime Minister’s Questions (12pm), one likely to be heavily laden with Brexit-related questions from both sides of the House and the Leave-Remain spectrum. Especially while the PM battles to avoid her first major legislative defeat, Europhile Conservatives pushing her to commit to a full parliamentary vote on Brexit terms, even in the case of a no deal exit.

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.