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

UK 100 Index called to open +40pts at 6190, trading levels last seen in very early January and extending the current rebound rally to 13% albeit now a little far above 3-week rising support. More importantly, however, is the now more convincing breakout beyond late January highs and the previously dominant 9-month falling resistance to test 6200. This opens up the possibility of the uptrend having legs towards end-November highs of 6400. Watch levels: Bullish 6215, Bearish 6180.

The positive opening call comes after Asian equities built impressively on a strong stateside finish with encouraging US macro data (ISM Manufacturing, Construction spending, PMI Manufacturing) having bolstered the case for further Fed rate rises in 2016 (so good data is good news again). Even a Moody's warning for China has failed to derail bullishness, the ratings agency worried about a rising debt burden and reform success. A gentle nudge ahead of the upcoming 5yr plan meeting?

Overnight Asian data and currency moves also helped, with Australian GDP ahead of expectations and a weaker Japanese Yen helping the Nikkei. In the commodities space, oil prices holding up near recent highs and a breakout by Copper and another leg higher by Iron Ore are providing an additional boost to appetite for risk assets. Note however, Reuters suggesting the recent equity-oil correlation had dropped considerably over the last few sessions aver moving in lock-step for a while.

Along with hopes for more well flagged stimulus from the ECB next week and China to prop things up, bullishness suggests markets coming round to divergent policy among central banks. Either that or they simply don't see the US hiking again this year, even if data allows, preferring to err on the side of caution to maintain financial market stability rather than risk another January meltdown.

While politically it was dubbed Super Tuesday in the US, it certainly was for equity markets. Whether it was in terms of Donald Trump taking 7 states and a firmer grip on the Republican presidential nomination is another matter entirely, with the candidate bitching dial turned up another notch.

US markets rallied strongly yesterday on the back of better than expected macro-data while the oil price continued to have rising support provided by talk of production cuts. US treasury Secretary Jack Lew held talks at the G20 to try to discourage ‘tit for tat’ currency devaluations by emerging economies - the sort of thing that can lead to greater global market turmoil, and presumably a stronger USD which would have a direct impact on the US. His reported success has likely improved sentiment further this morning.

In focus today we have European Producer Prices seen holding in deflationary territory and thus adding to the pressure on ECB President Mario Draghi to deliver more stimulus next week. Then we have US ADP Employment Change (Non-farm payroll warm-up) seen posting another circa 200K of jobs adds in February. DOE Oil inventories sure to add spice after another increase in API stocks yesterday. Listen out for the Fed’s Williams and the what the US Beige book has to say about the state of the US Economy.

Brent and US Light Crude remain supported given a purported deal in which 75% of the world’s oil producing nations have agreed to freeze production. Naturally, Iran isn’t one of them, so its own contribution to global supply will be scrutinised by traders over the coming months. Crude production is set to continue to rise, then, adding to already burgeoning US stockpiles.

Gold is well into another narrowing pattern (through 2nd half of Feb), with its latest down move coming as equity markets go more risk-on, encouraged by good economic data, oily confidence and reassurance from the G20 allaying global growth fears. Note Goldman Sachs saying recent equity market strength isn’t based on fundamentals (the same Goldman Sachs that recently exited quite a few of its ‘top trades for 2016’).

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

• ITV vows to outperform market in 2016, pays special dividend
• Virgin Money's FY underlying pretax profit jumps 53%
• UK's Poundland says CEO Jim McCarthy to retire
• Rolls-Royce Committed to Diversified Portfolio -Chairman
• Costain says record forward order book up 11%
• Johnson Matthey says Jones to step down as CFO
• Stagecoach on track to meet expectations, but mindful of challenging environment
• SAB – Anheuser – Busch InBev agrees to the sale of SABMiller’s stake in Chinese joint venture to China Resources Beer
• Laird says FY revenue up 12%
• Synthomer 2015 Pretax Profit Rises; Remains Cautious of Europe & North America
• Amec Foster Wheeler Completes £1.7B 3-Tranche Refinancing
• Entertainment One Trading in Line With Expectations
• Dignity FY Profit Rises
• Poundland Says Kevin O'Byrne to Succeed Jim McCarthy As CEO
•  Laird 2015 Pretax Profit Falls; Says Confident for Growth in 2016
• Wizz Air February 2016 Traffic Statistics
• Subsea 7 Gets BP Contract Extension in The North Sea
• Two US Exchanges Weigh Bids For LSE
• Intertek To Deliver Solid Organic Growth In 2016, With Group Margins Broadly Stable
• Europa Oil & Gas Three New Large Prospects Identified Offshore Ireland