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

UK 100 Index called to open +35pts at 7075, after an overnight bounce from 7025 lows to make for another lower low that extends a falling channel of sorts since mid-February. Bulls need a break back above 7100, Bears another troubling of the lows. Watch levels: Bullish 7100, Bearish 7050

Calls for a positive open come in spite of a down day for Wall St, dragged lower by tech sector woes linked to Facebook and claims of data breaches, echoed by the sector in Asia overnight and the Washington Post reporting Trump preparing $60bn annual tariffs for China. The UK Index is higher despite Sterling holding most of yesterday’s gains vs the Dollar and up off its lows vs the Euro, with some Brexit uncertainty having waned since yesterday’s breakthrough press conference.

Corporate news this morning: GKN challenges Melrose’s pension obligation assumptions in light of Dana-Driveline deal; gets more shareholder support against hostile approach. Michelin to buy Fenner for 610p/share cash (31% premium). Bellway H1 revenues +15.3%, Op profit +16.5%, Pre-tax +16.9, NAV +17.4%, order book +7.7%, dividend +28%, maintains FY target of volumes +600.

Wood Group FY revenues +25% (pro-forma -12% for AMEC acquisition), EBITA +2.5% (-11.1%), swings to net loss, net debt jumps, anticipates modest EBITA growth  in 2018, positive on Mining. Imperial Brands announces disposal of a range of non-core tobacco products in US. TUI expects continued strong growth in cruises, to boost capacity.

Charter Court Financial Services delivers growth across the board, reiterates targets. Ocado Q1 revenues +11.7%, average orders +11.1%, but average order size -0.4%, hit by weather. De La Rue profits warning (expected lower end of range); CFO steps down. Chemring seeing recovery across all segments, sustained by US, reiterates FY outlook at constant FX.  EnQuest lower FY production, revenues, profits and cash flow, Kraken to need less CAPEX, Jan/Feb production strong, expects material increases in 2018 to boost cash flow and reduce debt.

US equity markets closed with heavy losses (circa 1.5%) on Friday, with the tech sector getting a pasting after Facebook fell as much as 7% on claims of customer data misuse, and concerns grew of more sector regulation. Some jitters also ahead of tomorrow’s Fed policy meeting, more for the new ‘Powell outlook’ than the widely expected hike.

Gold has been on the back foot all night, pulling back from $1320 towards yesterday’s 1315 breakout. Bulls hope to see a bounce that ignites a bullish flag higher (maybe even an inverse head & shoulders reversal), that results in a breakout from a March falling channel. USD weakness or safe-haven demand required. Fed expectations could be highly influential.

Crude Oil benchmarks have extended their rebounds (Brent to $66.6, West Texas to $62) ahead of tonight’s API inventory data (and EIA tomorrow), with investors weighing up strong compliance of OPEC-led cuts helping offset rising US production (shale/fracking), although the pace of the latter may well show a slowing in the latest week’s data to buy barrel prices.

In focus today will be UK Consumer Price Inflation (CPI; 9.30am), forecast to have rebounded in February (0.5% MoM vs Jan -0.5%) but cooled on an annual basis, for both headline (2.8% vs 3% prev) and the all-important Core metric (2.5% vs 2.7% prev). The data is key in terms of inflationary pressure and the BoE alluding to a looming rate hike that could come as soon as May. Watch GBP.

After yesterday’s better than expected Rightmove data, UK House Prices may also generate a reaction from the UK housebuilders. Thereafter, German and Eurozone ZEW Surveys (10am) are seen retreating across the board,  while Eurozone Consumer Confidence (3pm) falls back to flat after a recent positive foray.

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.