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

UK 100 Index called to open +25pts at 6160, having found overnight support at 6110 which has helped deliver another bounce to the midpoint of the 5-week 6100-6200 channel. The Bulls will be excited by rising lows since Tuesday’s recovery from 6060. The Bears continue to eye falling highs from end March, or at least for 6200 to remain a hurdle. Watch levels: Bullish 6170, Bearish 6145.

The positive opening call comes despite a mixed session in Asia where sentiment was bruised by the most negative close on Wall Street for almost 8 weeks (Financials and Telecoms underperforming) and a persistently strong Yen holding back Nippon exporters. Higher Oil prices are helping boost risk appetite into the end of the week despite a stronger USD after Fed Chair Yellen said the US was on track for further rate rises.

However, the Nikkei has moved back into the green on speculation about not entirely successful Yen currency intervention by the Bank of Japan (BoJ), despite Prime Minister Abe reiterating this week that the country would refrain from competitive devaluation (aka. currency wars) to help engineer economic growth and inflation.

Australia’s ASX in the red despite the higher oil price and weaker Aussie dollar as with metals prices still under pressure and the global growth outlook remaining very uncertain. With M&A taking a knock from US governmental interference and markets on the doorstep of what is likely to be a tough US earnings season (Alcoa, Monday night) markets remain jittery.

Oil prices continue to get excited by the 17 April Doha meeting despite a chance of a production freeze deal looking slim to say the least with Iran saying ‘No’ and Saudi Arabia saying ‘Only with Iran’. Desire is there, but as in break-up speak “it’s complicated”. Brent at $40 and US Crude at $38, both still hindered by long term falling resistance.

Gold’s bullish breakout at $1230 saw it get as high as $1243 yesterday, however it has eased back with the USD seeming to find a bottom. Support at $1235 means potential for another up leg, but this would surely require risk appetite to wane into the weekend or an increasingly dovish Fed outlook.

In focus today, we have UK Industrial Production seen posting slower growth in February and Manufacturing having a poor month, contracting. The Fed’s Dudley speaks early afternoon. Thereafter, US Wholesale Inventories are seen weak in Feb despite Wholesale Sales rebounding. The Baker Hughes Rig Count after the European close could influence Oil prices in late trading.

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.

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

• AB Foods says makes 5.6 bln rand offer for remaining stake in Illovo Sugar
• Hikma Pharma Says ANDA for Generic Advair Diskus Accepted for Filing
• IAG Eyes Organic Growth in Asia Instead of M&A Opportunities
• John Wood Group says acquired oil industry software supplier Ingenious Inc
• Tullow plans to reissue output guidance after technical issue at Jubilee field
• Tullow Oil Says Bearing at Field in Ghana Damaged, but Production Continues
• Dechra names Tony Rice as chairman from October
• Tesco is expected to say its recovery, though still in its early stages, is gaining momentum when the supermarket operator reports annual results next week
• London copper faces largest weekly loss since January
• India's Vijay Mallya needs to give up USL perks to access $40 mln payout from Diageo – Economic Times
• Oil prices rise on firm US, German growth; but traders warn of ongoing crude glut