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

UK 100 Index called to open +100pts at 5935, after a solid rebound from 5800 and break back above 5900 overnight. Importantly, the bounce maintains rising lows (just) from January’s recovery from test of 3.5yr lows of 5600. However, the recent sell-off also adds to December falling highs which could cap upside at 6100.  Watch levels: Bullish 5960, Bearish 5910.

The positive opening call comes after a largely bullish session in Asia with commodities rallying, notably oil, thanks to an evaporation of USD resilience on expectations the Fed will reign in over-egged hawkishness. This delivered a welcome overshadowing of global growth concerns for markets hooked on cheap money.

Note Japan’s Nikkei not joining the bull party, exporters falling victim to JPY strength (result of USD weakness)  - all BoJ governor Kuroda’s hard work (and more) from negative rate bombshell undone in less than a week. Note Australia’s ASX outperforming on exposure to mining and energy names which rallied on USD weakness and commodity strength.

US bourses swung yesterday - an initial sharp sell-off triggered by a disappointing data print gave way to a mixed finish after oil prices (and the wider commodity space) benefited from a slump in the USD. Diminished US currency strength was put down to a more dovish outlook for policy tightening, with Goldman Sachs now expecting just 3 rate hikes this year (only 3?!) while markets continue to price in just the one. Fed’s Dudley spoke of tightness and turbulence, putting a March rate hike essentially off the cards.

Credit Suisse the latest investment bank to post a dour set of Q4 results, swinging to a loss in the final 3 months after writing off $billions in goodwill and making provisions for the coming litigation storm. Oh, and not forgetting a loss of several billion dollars in its main trading unit. The phrase “I’ll get my coat” springs to mind. Note results from heavy weights AstraZeneca (AZN) signalling declining profits and Royal Dutch Shell (RDS) hurting from the low oil price.

In focus today: With consumer confidence and inflation so key the world over, Eurozone Retail PMI figures may begin to garner more attention. Super Thursday is also upon us with the Bank of England’s (BoE) latest policy decision, minutes, inflation report and press conference from Governor Carney. However, expectations are, if anything, for merely more dovishness to creep in, pushing expectations of a UK rate rise back further, in-line with peers delivering/hinting at more stimulus and debate about a Fed backtrack.

In the afternoon, US data comprises US Labour Costs and Productivity seen giving conflicting signals (costs up, productivity down) while the notoriously volatile Durable Goods and Factory Orders reading are sure to amuse and confuse in terms of US economic outlook and Fed policy trajectory, especially ahead of tomorrow's Non-Farm Payrolls jobs report.

Crude prices surged yesterday amid a considerable USD selloff with commodity miners benefitting handsomely too. Brent is just shy of $36 while WTI sits below $33 this morning. Potential exists for a pullback once fallout from yesterday’s volatility subsides, since oversupply issues remain. Note, however, that the US Dollar Basket may well be simply consolidating this morning ahead of another leg down towards 95.5. if that starts to happen, expect further upside.

As a side note, 6 OPEC members and two non-members are up for having an emergency meeting….. none of them being Saudi Arabia. OK, so Russia managed a little trick but Venezuela et al are unlikely to carry quite as much weight there.

Much the same goes for Gold after the yellow metal found its way past $1140 on yesterday’s sharp USD move. Potential downside only about as far as $1130, while we still see it on track to target $1160.

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

• Vodafone Says Underlying Revenue Growth Rebounding
• Legal & General Finance Chief Mark Gregory to Retire Jan 2017
• Compass 1Q Organic Revenue +5.9%; 2016 Outlook is Positive
• Smith & Nephew 2015 Operating Profit Hit by Costs; Revenue in Line
• Stagecoach says DfT shortlists co for tender for New South Western rail franchise
• Insurer Beazly's FY buoyed by benign catastrophe year
• Centrica's UK Rough gas storage site in outage
• Shell Profit Battered by Weak Oil Prices
• easyJet passenger numbers rise 6.3 pct in January
• AstraZeneca Sees Low To Mid Single-Digit Percentage Decline In 2016
• DFS Furniture Reports Growth in 1H Sales, Finance Head to Retire
• FirstGroup Statement re South Western rail franchise
• Beazley 2015 Pretax Profit +8%; Sees Tough Market Conditions in 2016