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

UK 100 Index called to open flat at 6200, with futures having traded around the key level since yesterday’s close. Of importance for the bulls is the first close above the 200-day MA at 6180 since June 2015, and bettering of the trend of 9-month falling highs, offering hope for extension of the mid-February rally towards late 2015 highs of 6450. For the bears, continued inability to better March highs of 6220 and th 13% rally from 2016 lows remains the party line for a correction. Watch levels: Bullish 6235, Bearish 6175.

The neutral opening call comes after a busy week for central bank updates which resulted in gloomy views aplenty fuelling optimism of lower - even negative - rates for longer. A weaker USD has also ushered oil prices to 2016 highs and the Dow Jones Industrial Average rallied back into positive territory for the year. As for today, will it be risk-on or risk-off into the weekend?

Overnight, Asian markets are mixed again with dovish Fed-inspired USD weakness (weakest since last June) helping commodities and miners on the Australian ASX. The flipside of US currency weakness is continued hindrance for Japan's Nikkei and its multitude of exporters via the resulting Yen strength (USD/JPY testing 16 month highs), even if Energy names have benefited from the higher oil price.

Note Chinese stocks still in recovery mode, set for their steepest weekly gains helped by accelerating recovery in property prices coupled with speculation that some banks may resume margin lending.

US markets had another green day on Thursday, tracking the oil price back up on a weaker USD. Note Treasuries also closing positive - equities and bonds are usually negatively correlated - indicating a market torn between US economic confidence (macro data included Philly Fed Business Outlook bouncing back strongly) and global growth jitters (external risks...).

Note US bank stocks could now be very reasonably priced according to Aaron Black in the WSJ, markets arguably having priced in fewer rate hikes already this year given the tumultuous start. With global markets stabilising, oil back up off its lows and the US economy picking itself up slowly, it could be time for investors to return to market and position themselves for a higher interest rate future, according to Black.

In focus today amid a lack of macro data will be US Consumer Sentiment this afternoon via the Uni of Michigan (UoM) Sentiment reading, with an improvement pencilled in before the US Baker Hughes Rig Count probably shows yet another decline as US shale/frackers leave the party. Although that oil price rally may mean it is not long before they return. Might $45/barrel be enough to attract the new swing producers back to the party? Note several Fed speakers this afternoon, who will be looked to for the very latest on US monetary policy views.

US Crude prices made new 2016 highs this morning and are set for a 5th straight week of gains as optimism grows that global oil production will stop growing (even though it doesn’t take a philosopher to come up with an argument for that being impossible. Iran, anybody?) and a weaker USD providing buoyancy.

Gold is consolidating after a very strong session yesterday, fuelled by a much weaker USD. The question now is whether the Dollar’s longer term uptrend is set to continue, as Goldman Sachs thinks it is, or whether markets may again decide to price in fewer US rate hikes than the Fed has most recently indicated. All that said, bears will be licking their lips if the yellow metal drops below $1265.

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

• AB Foods still in talks to buy South Africa's Illovo Sugar
• BT names former BG exec Lowth as finance director
• Genel Energy intends to buyback a minimum of $50 mln in nominal value of bonds
• Berkeley Group sees results at top – end of expectations
• Oil hits 2016 high on output – freeze hopes, set for longest winning streak for a year
• Interroll Holding FY 2015 EBITDA up 32 pct to CHF 58.2
• Moody's says Euro area recovery ongoing, but reform efforts are fading and political risks rising
• Foodpanda buys Delivery.com's HK business, consolidating territories
• Go-Ahead Fails to Win London Overground Contract