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

UK 100 Index called to open -20pts at 7280 having gone ex-div for 26pts and traded sideways overnight, within roughly the same 7275-7290 confines as the prior night. Feb’s uptrend remains intact, but we continue to flirt with Feb rising support at 7275. Bulls need a break above 7288 overnight highs to allow for another challenge of 7300. Bears want to see a test of 7275 to open the door for a drop towards at 7255. Watch levels: Bullish 7290, Bearish 7270.

Calls for a negative open come despite Fed policy meeting minutes leaving markets a little less hawkish about the timing of the next US rate hike. Solid US data clearly warrants further increases but Trump policy uncertainty (especially on tax) also allows the FOMC to bide its time. “Fairly soon” likely favours May or June versus an imminent March where debate will, nonetheless, surely fiercen.

Asian equities are negative overnight, echoing a stateside session that saw only the Dow close higher (another record) with a slightly softer Dollar (off its worst levels) holding back Japan’s Nikkei via a slightly stronger Yen. Australia's ASX is underperforming with base metals under pressure from higher China copper inventories and a pullback in steel futures pressuring the likes of zinc and nickel. This despite a bounce by oil.

UK Index sentiment may be impacted by major bank Barclays swinging back to FY profit thanks to a surge in investment banking revenue and close to completing major restructuring although it has cut its dividend. Elsewhere, the government has cut its bailout stake in Lloyds to below 4%. In the mining space, Glencore adjusted profits look to have beaten consensus, and while 40% debt reduction is not to be sneezed at, it is slightly less than expected.

US equity markets finished Wednesday mixed, with the Dow Jones outperforming (+0.2%) as DuPont and Dow Chemicals’ merger is expected to get the green light, while Fed minutes failed to provide markets with any further information on the date of its next rate hike. The S&P 500 closed 0.1% lower in its worst performance since 6 Feb as rallying Utilities were unable offset weakness from Energy names, while the Nasdaq also finished weaker by 0.1%, its worst showing since 2 Feb.

Having sold off yesterday investors positioned themselves for a further rise US stockpiles, Crude Oil prices have since bounced from two week rising lows support with US industry inventory data showing a surprise drawdown in stocks, breaking a streak of six consecutive builds. The focus for investors will now be on this afternoon’s official government inventories (3:30pm) for any confirmation.

Gold prices spiked after the release of the Fed minutes last night after testing $1233 support in the hours preceding the release, as no further clarity was given as to when the next rate hike will come. However, the precious metal was unable to overcome $1239 resistance and has since gently sold off overnight, trading in a tight $1236-$1238 falling channel.

In focus today will be fallout from last night’s Fed minutes which were taken as less hawkish than the meeting itself. While reiterating that rate hikes should come sooner rather than later, the minutes also pointed towards uncertainty from incoming Trump administration policies that could impact the Fed’s decision making before the next meeting. As such, all meetings remain live, however we are left no more enlightened as to when exactly the next hike will come.

We also have multiple central bank speakers including the ECB Chief Economist Praet in the morning and the Fed’s Lockhart (non-voter, retiring end-Feb) in the afternoon, followed by EU President Juncker and the Fed’s Kaplan (voter, neutral).

Data-wise this morning, UK CBI Sales are expected to have rebounded in February. In the afternoon, the Chicago Fed index may have fallen back to breakeven while Jobless Claims hold firm along with FHFA House Prices and the Kansas City Fed.

It could be that US Oil Inventories offer the most spice given the run of builds we have had and API data breaking its streak overnight.

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

• Mondi posts 3% rise in FY underlying operating profit to 981m euros
• Online gaming firm Kindred to buy 32Red in £176m deal
• Relx proposes full year dividend growth
• Glencore reports 18% 2016 core profit rise on commodity rebound
• Crude oil rises after report shows drop in stockpiles
• Barclays gets surprise core capital boost as profit climbs
• Barclays agrees to pay $988m to split with Barclays Africa
• British property firm Intu 2016 NAV unchanged from last year
• Intu Properties names John Strachan as chairman
• Kaz Minerals FY profit before tax $220m vs $12m year ago
• RSA posts 2016 operating profit beat, ups return on equity target
• Howden Joinery FY pretax profit £237m
• Monitise HY total revenue £28.2m
• Gold steady post Fed minutes; focus on Trump economic policy
• Morgan Sindall FY group adjusted profit before tax up 32%
• Sky TV considers options after NZ rejects Vodafone NZ deal
• BAT reports slight increase in full – year sales volume
• Gambling technology provider Playtech says FY revenue up 12%
• Centrica returns to profit growth, flags dividend rise
• Rathbone Brothers says FY funds under management up 17.1%
• GKP says Iraqi Kurdistan govt to export Shaikan crude on trucks
• BAE Systems sees earnings up 5 – 10% on increased defence spending
• National Express Group raises free cash flow guidance and proposes dividend increase