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

UK 100 Index called to open -20pts at 7210, having extended yesterday’s retreat but bounced off its worst levels overnight. Bulls need a break above breached support at 7230 while Bears will be eyeing up another venture below 7200. Watch levels: Bullish 7230, Bearish 7200

Calls for a negative open derive from a sharply lower close on Wall St last night after disappointing stateside macro data prints and continued tighter Fed policy jitters which sent USD higher to hamper sentiment in Asia overnight. Miners weaker in Asia as metals suffer under stronger Greenback but both these and Oil are off their worst levels helped by better than expected unofficial China PMI Manufacturing that eased concerns after Wednesday's official report.

Corporate news this morning: CRH FY sales +2%, EBITDA +6%, net debt below guidance, dividend +4.6%, sees steady US, Asian growth and European recovery momentum. Rentokil Initial FY ongoing revenues +20.6% (+14.5% at constant FX, +3.8% organic), operating margin expansion, dividend +15.1%, expects growth in 2018, M&A of £280m seen at £200-250m in 2018. Carpetright issues another profits warning.

Bovis FY completions -8%, avg selling price +7%, revenues -3%, pre-tax profits -26% (customer satisfaction costs), net cash +275%, dividend +6%, 2018 controlled growth in 2018, sets 2020 targets. Cobham FY revenues +5% (underlying organic +1%), orders -8%, operating profit -6.5%, free cash flow up and debt metrics down. National Express pre-tax profits rise on strong international growth.

Schroders FY pre-tax profit pre-exceptionals +24%, net income +15%, assets under management +13%, net inflows up 770% (not a typo),  dividend +22%. WPP FY revenues +6% (+1.6% constant) and beats consensus decline, profit £1.9bn beats £1.5bn est. Like-for-like revenues -0.3% vs consensus -0.4%; like-for-like billing -5.4%. Expects flat sales in 2018. Merlin revenues grow, but operating profit flat after FX which could hinder 2018, dividend +4.2%, recent trading in-line.

US equity markets skidded once again, finishing the month lower for the first time in 8-10 months. The Dow Jones snapped a 10-month streak, its best in almost 60 years, rounding off the weak month emphatically with a 1.5% fall, led by Industrials Caterpillar and 3M alongside UnitedHealth. The S&P 500 also broke a 10-month run, closing 1.1% lower as the Energy sector was the pick of yesterday’s losers, while the Tech-heavy Nasdaq snapped an 8-month winning streak.

Gold is lower once again as the US dollar trades a fresh 6-week high, seeing appetite for the dollar denominated asset fall after a slight recovery yesterday. Having failed to overcome support turned resistance at $1321, the precious metal has retreated to a fresh 3-week low, although the US dollar coming off its highs has helped the non-yielding asset find tentative support at $1314.

Crude Oil benchmarks are trading sharply lower overnight, dragged lower after a much larger than expected build in US inventories, while a stronger US dollar also makes investing in USD-denominated asset less attractive. With that said, however, global benchmark Brent is trading at overnight highs, attempting to regain a $65 handle as USD comes off highs, while US crude is off overnight lows of $61.4, attempting to overcome $61.8 intersecting resistance.

In focus today on a packed day for macro data will be US Income and Spending figures (1:30pm), potentially offering insight into yesterday’s revision of US Q4 GDP and more clarity on US inflation and thus monetary policy outlook.

This morning, a range of Manufacturing PMI prints will be the focus of European traders. With Spain (8:15am) expected to continue a 4-month decline, Italy (8:45am) retreating from an all-time best, and both France (8:50am) and Germany (8:55am) confirming a 3-month retreat, the headline Eurozone figure (9am) is unsurprisingly expected confirmed lower for a third month at a 4-month low. The UK (9:30am) isn’t expected to fare any better, retreating for a fourth consecutive month to a 7-month low.

UK Mortgage Approvals (also 9:30am) will be of key interest to investor sin Housebuilders, especially after December’s weakest reading since 2015. Meanwhile, Eurozone Unemployment (10am) is expected to fall to a fresh 9-year low of 8.6% after two months unchanged at 8.7%.

A busy afternoon sees US PMI Manufacturing (2:45pm) expected to outshine its European peers, confirmed higher at a fresh 3-year peak, while the equivalent ISM Manufacturing print (3pm) edges marginally lower for a second straight month alongside Construction Spending falling to a 3-month low.

Speakers today include the second day of Congressional testimony from new Fed Chair Jerome Powell (3pm), this time in front of the Senate Banking Committee,  NY Fed head Dudley (4pm) talks about Trade and Globalization at a Central Bank of Brazil event in Sao Paulo, with audience Q&A.

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