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

UK 100 Index called to open +25pts at 6155, with another bounce from 6100 reinforcing the level as resistance-turned-support following the recent breakout. This adds to the likelihood that recent sideways activity proves consolidation before further upside towards 6400, extending the existing strong recovery rally from mid-Feb lows of 5500. Watch levels: Bullish 6180, Bearish 6130.

The positive opening call comes as Asian markets follow the US higher with 'some' improved stateside data easing recessionary fears and bolstering confidence ahead of today’s US jobs report, while the oil price reaches 8-week highs on misplaced production freeze hopes. Investors nonetheless hoping the Fed will continue to find reason to hold off from further rate hikes to avoid derailing the current market recovery,  and hopeful of more stimulus being forthcoming from China and Europe.

Asian stocks extended their winning streak to a fourth day and a third week of gains. China outperforming, still supported by Monday’s PBOC move ahead of the weekend’s annual Parliamentary meeting from which clues about further supportive policy will be sought. Japan’s Nikkei boosted by a Yen off its recent highs and likely stability-seeking commentary from the BoJ’s Kuroda, in the run-up to a mid-month policy meeting, that he is not considering taking interest rates further negative.

Australian equities positive but trailing peers, helped by a rebound in banks and commodity strength (Copper near 3-month highs) as well as raised sentiment from this week’s solid GDP read, although retails sales did miss expectations overnight. Note geopolitical risk back on the table with North Korea ordering troops to be ready for nuclear war. This while we watch from afar as the US presidential nomination circus continues and a Syrian ceasefire of sorts offers some hope for the region.

US bourses closed higher overnight with the oil price holding firm near Jan levels, even though a Gulf OPEC delegate said there’d been no decision on the date or venue for this fabled OPEC/non-OPEC meeting everyone’s been talking about. Support likely came from the fact that Mr. Gulf OPEC delegate man is nonetheless looking forward to having a good meeting with positive results. Stateside markets also saw some disappointing economic data prints (US service sector PMI lowest since Oct ‘13, ISM non-manufacturing lowest since Feb ‘14, factory orders missed, initial jobless claims rose last week).

The Fed’s bank basher, Kaplan, reminded us all that current policy is even less accommodative right now due to more challenging global financial conditions. Presumably the underlying message there is that another rate hike would be a) unwise and b) unnecessary.

In focus today will be US Non-Farm Payrolls, although we attach more importance to wages growth for its inflation impact. The Fed's Kaplan will be back on the wires after the Baker Hughes Rig Count which probably showed yet another drop after US data suggested reduced oil production of late. Europe decidedly lacking in terms of data today. 

As mentioned above, crude prices are finding support in hopes of a production freeze sometime this year, and a little uptick in emerging markets confidence that’s benefitted mining stocks and EM-focussed financials this week. Note though that US Light Crude is trading near the floor of a potential bearish rising wedge that could preclude some technicals-based downside today. Brent is up near late Feb / early Mar resistance.

Gold is off its overnight highs $1268 but supported above $1260 by safe haven demand ahead of the US jobs report, with investors likely wary of yesterday’s jobless claims data.

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

• Russia's Rosneft says plans to raise oil exports via Druzhba pipeline by 3 – 5% in 2016
• WPP makes good start to 2016 after strong end to 2015
• London Stock Exchange posts 31 pct rise in profit
• Alliance Trust assets under administration rise 32%
• EasyJet February passengers rise 9.8 pct to 4.9mn
• Rare Earth Minerals – REM increases stake in the Cinovec Lithium Project
• Asian shares head for best week in 5 months, US job data eyed
• Crude prices climb after U.S. oil output falls for 6th week