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

UK 100 Index called to open -10pts at 6135 (ex-div impact -13pts), still held back by the highs of late yesterday and overnight, yet holding the breakout from 2015’s downtrend . Also still in uptrend from last week’s lows thanks to bounce off 6100 yesterday afternoon. Potential bullish ascending triangle over the last 14 hours, a breakout from which could send the index back towards 6200. Watch levels: Bullish 6160, Bearish 6120.

The slightly negative opening call comes as markets do their usual settling thing ahead of US Non-Farm Payrolls. And while, in our view, jobs is no longer that important for US monetary policy decisions, investors are quite happy to maintain raised risk appetite based on improved US economics and hopes the Fed will wait before hiking again. There is also an element of digestion after the recent strong rally and yesterday’s pause-for-breath pullback from highs.

The muted open comes in spite of Asian markets extending their gains to 8-week highs, led by banks and raw materials, with commodities continuing to advance. Note also disappointing PMI Services from China and Japan have merely compounded existing hopes of stimulus..

Asian gains follow largely positive finishes in the US and Europe which were helped by an oil price inching higher (lower US production data and more talk of an OPEC production freeze offsetting yet another US stockpile increase). Deflationary Eurozone PPI added to hopes of more stimulus from the ECB next week while Chinese leaders prepare to this weekend.

U.S. markets ended the day with small gains, the same small gains the US economy looked to have enjoyed according to the Fed’s Beige Book which was spattered with the words ‘modest,’  ‘flat’ and ‘strong’ with regard to economic expansion, wage growth and price levels (not necessarily in that order).

Thereafter, the Fed’s Williams maintained his positive view on the economy and his preference for a gradual tightening of policy over the course of 2016. However, we’re already in March (no action expected this time round) and with the madness of a US general election likely to see the Fed hold off in H2, it’s hard to see when the next opportunity to raise rates by a paltry 25bp will present itself.

In focus today will be Eurozone PMI Services data which follows Tuesday’s mixed bag for Manufacturing. Will France remain in contraction whilst regional peers, the region itself and the UK post strong growth. Eurozone Retail Sales seen posting slower growth in Jan. Will US PMI Services regain break even while ISM Non-Manufacturing continues to advance. US Factory Orders can be volatile like Durable Goods Orders. The Fed’s Kaplan speaks this afternoon.

US Light Crude managed its best close since 5 Jan after record US stockpile data was offset by other readings which suggested production is decreasing, easing the global oversupply. Balance no doubt tipped in favour of the bulls by clever rhetoric from OPEC and non-OPEC ‘allies’ concerning agreements to agree on an agreement to freeze output one day. The inevitable read across to Brent sees both markers trading at or near resistance this morning (Brent @ $37, WTI @ $35).

Gold’s range continues to narrow ahead of tomorrow’s US jobs data, which is sure to give the usual short-term volatility but little else.

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

• Spirax-Sarco's FY adjusted pretax profit flat
• Cobham expects an earnings bias to second half of year#
• Admiral 2015 pre – tax profit rises above – forecast 6 pct
• Travis Perkins full year core earnings up 7.6 pct
• Genel losses deepen as reserves write – off, weak oil price bite
• Satellite company Inmarsat sees tough trading persisting
• Aggreko on track to deliver cost savings after profit falls
• UK house price growth accelerates in February, Nationwide says
• Carillion sees further progress in 2016
• CRH earnings up 35 pct to 2.2 bln eur, ahead of recent guidance
• Schroders CEO to take Chairmanship role after boardroom reshuffle
• Schroders posts FY profit beat, replaces CEO and chairman in board shake – up
• Ladbrokes plc – Coral Group Results – 16 weeks to 16 January 2016