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

UK 100 Index called to open +10pts at 6370, the index consolidating overnight following yesterday’s strong gains. Potential for more profit taking this morning to take things a little lower, but bulls are still hopeful of an eventual continuation towards Early Dec highs of 6450. A pullback as far as 6300, however, could see the daily RSI turn back down from currently bullish levels and herald a return to the March sideways channel. Watch levels: Bullish 6400, Bearish 6290.

Another positive opening call comes on the back of another strong Asian session, itself tracking a positive performance on Wall St. after JP Morgan beat consensus with its Q1 earnings. While nerves are still shredded as regards other big companies yet to report, we nonetheless saw financials lead gains and a read across to the UK’s own banking sector. Continued oil price strength is also helping the energy sector on both sides of the pond ahead of this weekend’s Doha meeting at which it’s expected a deal will be struck to do something about the global crude supply glut, whatever that may be. No one really knows…

Note US retail sales disappointed across the board yesterday, which is at odds with a broader print in the Fed’s Beige Book indicating modest growth in the US economy. Taken together, one may conclude that the US is learning to ride its bike again, but it may not yet be time to remove the stabilisers!

Oil prices themselves are in decline again this morning, with bearish double tops on Brent and WTI in progress looking to see prices back to $42.7 and $40.3 respectively. We’d expect the next big move to occur over the weekend and into next week, assuming markets will lap up what the Doha delegates have to say (bullishly or bearishly…) Brent currently at $43.5, US Crude at $41.

Gold is consolidating on the way down (as it should be given that equities are doing the same on the way up), with more downside likely today as long as risk appetite remains high. $1225 a potential target for bears going short now, while a bounce off support at current levels could see a return to $1243. Currently $1233.

On the Macro front today we’ve got inflation data from the Eurozone and US, the BoE interest rate announcement (Don’t panic! It’s set to remain at 0.5%) and US employment data.

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)

• Unilever CFO stands by full – year sales forecast
• Vodka maker Stock Spirits swings to profit in Polish market
• Burberry: weak sales to put stock under pressure
• Hays expects caution in UK market ahead of Brexit vote
• Rio Tinto drops plan to push out supplier payments
• Poundland says on track to meet forecasts despite tough period
• Burberry's second – half sales fall in challenging luxury market
• Swiss Re, Legal & General set to bid for Deutsche's Abbey Life
• JD Sports FY revenue rises 20 pct to 1.82 bln stg
• Unilever first – quarter sales in line with estimates
• Debenhams first half profit up 5.5 pct, on track for full year
• British soapmaker PZ Cussons says FY outlook remains in line with expectations
• Builder Persimmon says forward sales strong for 2016
• Debenhams says process to appoint new CEO well advanced
• Oil prices extend fall with no end in sight for glut