UK 100 Index called to open +25pts at 6845, back from its 6858 overnight highs yet holding its uptrend from Monday’s 6760 lows. Despite the index’s challenge and breakout at 6850 yesterday, Bulls want to see 6860 or better to clear 2-week horizontal highs before getting excited about seeing 6900/6950 again. Bears are watchful of any weakness around 6840 rising support for hints at a potential pullback towards 6800. Watch levels: Bullish 6865, Bearish 6830.

A positive opening call comes after US indices registered another quartet of record highs (an upgrade from the summer trifecta; Russell 2000 now joined in) on optimism about what a Trump administration will deliver (infrastructure spending, tax cuts, less regs for banks) and OPEC’s ability to deliver on production cuts by month-end, despite much conflicting chat.

With Japan’s Nikkei closed for Labour Thanksgiving Day we look to Australia's ASX for clues about investor sentiment on the other side of the world. Note strong gains for both Miners and Energy after Metals prices bounced on a weaker USD and Trump spending hopes while Oil holds up around recent OPEC-inspired recovery highs. An improvement in China’s MNI Business Indicator is likely also helping  given the country represents Australia’s biggest trading partner, adding to the potential positive read-across for UK Index -listed Miners and Oil.

US equity markets closed at record highs for the second day in succession, with the Dow Jones breaking the 19,000 mark for the first time ever yesterday. Stocks are continuing the post-election Trump rally, with the Telecoms sector leading both the Dow and S&P, taking over from Energy names as the Oil rally looks to be slowing down after Monday's spike.

Crude Oil prices are paring some overnight losses on a technical rebound, however optimism that an OPEC production cut deal will be made are beginning to fade, especially given the deferring of the decision to include Iran and Iraq in any deal until November 30 with the two states remaining unwilling to commit. American Petroleum Institute US inventory figures showed a larger than expected drawdown last night, however this did little to buoy sentiment. Look for tonight’s official DOE EIA Inventory figures to either confirm or dispel last night’s data.

Gold remains near 9 month lows as investors move away from non-yielding safe haven assets and towards equities following the US election. This evening’s latest Fed minutes release may impact the price of the precious metal further as markets will scrutinise the release for any definitive indication of a rate hike next month.

In focus today will be UK Chancellor Hammond’s inaugural Autumn statement (12.30pm) which will essentially represent a rather dull Brexit budget in which he will wrestle with a worsening of public finances but will nonetheless put cheaper housing front and centre by banning letting fees. Critics say this will only push up rents and house prices, so expect Estate Agents (Foxtons, Countrywide, Winkworth, Savills Purplebricks) to see their share prices move today as it could dent profitability.

A 4% increase in minimum wage may also impact Retailers (Next) and Supermarkets (Sainsbury, Morrison, Tesco) although this may be offset by a hint at a VAT cut next April. A pledge to build more affordable homes may provide boost to Housebuilders (Barratt Developments, Bellway, Bovis, Persimmon, Redrow, Telford Homes). A cut in Air Travel Tax may help Travel (IAG, easyJet, Ryanair, Tui, Thomas Cook) while a crackdown on fake whiplash claims would help Insurance (Direct Line, Admiral, Esure, Hastings, GoCompare).

Data-wise this morning, French German and Eurozone PMI Manufacturing and Services are seen pretty much unchanged in November’s preliminary readings. In the afternoon, with US indices back at record highs, keep an eye out for Durable Goods Orders, House Price data, PMI Manufacturing Consumer Sentiment and Weekly Oil inventories before US Fed FOMC minutes this evening.

Fed minutes will be looked to for clues about a rate hike next month, rather important given markets pricing in a 100% probability of a hike, despite a raft of market moving political events in the pipeline, an erratic Mr Trump included.

Note US markets closed tomorrow for Thanksgiving and likely quiet Friday with many stateside taking a long weekend.

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

• Vectura's first-half pretax loss widens to £18.6m
• CMC Markets says H1 net operating income -4%
• Finsbury Food says total sales revenues for first four months at £101.5m
• UK lender Paragon's full-year profit rises
• Londonmetric says acquires assets worth £40m
• Restructuring at Airbus puts 780 jobs at risk
• JKX Oil And Gas says October avg group production +2.4% from last month
• United Utilities reports H1 underlying profit, dividend in line with expectations
• GSK's Mepolizumab meets endpoints in phase 3 EGPA study
• Thomas Cook FY profit broadly flat after Turkey issues weigh
• Hammerson says VIA Outlets buys European portfolio
• Oil prices fall on renewed doubts over OPEC – led production cut