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

UK 100 called to open +20pts at 7200, extending Friday’s gains off the floor of a 3-week rising channel. Bulls need a break above 7220 Friday’s highs to challenge the channel’s 7300 ceiling. Bears require a breach of 7155 rising support. Watch levels: Bullish 7220, Bearish 7155

Calls for a positive open come after a strong rally in Asia, Chinese onshore market +5%, its best intraday performance since Aug ‘15. This follows tweets from President Trump noting “significant progress” in US-China trade talks and extending the 1 Mar deadline for imposition of US tariffs on £200bn worth of Chinese goods.

Closer to home, PM May scuttled the plans for another meaningful Brexit vote this week, instead pointing to 12 March as one of the last opportunities for Parliament to have its say on Brexit. That said, the GBP is mostly unresponsive, holding Friday’s turnaround rally back above 1.30.

In corporate news this morning, AB Foods reports expected sales growth in all businesses except Sugar (expects a loss, in-line with guidance), earnings in-line with last year. Net cash +143%, capex flat. Primark like-for-like sales -2% (missing -1.6% consensus), constant FX sales +4% (missing +4.8% cons.). FY outlook unchanged.

Persimmon could lose its Help-to-Buy contract after claims of “poor standards and hidden charges”, according to The Times report.

Bunzl FY revenue at constant FX +9% (+4.3% organic), adj. pre-tax profit +6%, final dividend +9.3%. Notes 3% hit to revenue from FX headwinds. Acquired Liberty Glove & Safety (FY’18 rev. $93m) for an undisclosed sum and committed to further £183m in M&A

AstraZeneca’s cardiovascular drug Brilinta's Phase III THEMIS Trial met primary endpoint, showing a significant reduction of major adverse cardiovascular events.

Hiscox FY gross written premiums +14.9%, pre-tax profit +246%, like-for-like group combined ratio -44bps to 94.4%. FX losses narrowed to £13.7m (-83%). Final dividend +5.2%. Expects to benefit from improved investment conditions in London, but US market could see less slower growth.

Provident Financial rejected a bid from Non-Standard finance, board advising shareholders not to take up the offer. Will explore alternative options. Notes trading in-line with expectations and to delay FY’18 results to 13 March in light of the takeover offer.

Hammerson FY net rental income -6.2%, adj. profit -2.4%, ERPA NAV/share -4.9%, portfolio value -5.9% after difficult operating conditions. Final dividend unchanged. Net debt -2.8%. Targeting £500m+ of disposals and forms a committee to bring net debt below £3bn this year (from £3.4bn).

Legal & General appointed Michelle Scrimgeour (ex-Columbia Threadneedle) as chief executive of its investment management unit.

Centamin FY revenue -10.7%, EBITDA -16.5% after a 13.2% decrease in gold production, free cash flow -56%. Unit costs +12%. Expects higher gold production next year, unit costs expected +1-7.5%.

Superdry chairman Peter Bamford is expected to leave this year under pressure from company’s founders, according to The Times report.

The Times reports that Daily Mail & General Trust is considering selling its 49% stake in Euromoney to fund its £750m shareholder return.

In focus today will be the fallout from President Trump’s decision to extend the 3-month US-China trade truce beyond its original 1 March deadline. Watch usual international trade-sensitive names (Miners, Asian banks, etc.) for potential read-across.

Macro data for Monday is limited to a couple of US releases, including the Chicago Fed National Activity Index (1:30pm), seen pulling back from an unexpectedly strong Dec reading, and the Dallas Fed Manufacturing Index (3:30pm), expected to continue a very subdued 3-month streak.

Much of the markets’ attention this week will be on Fed Chair Powell, scheduled to deliver his regular testimony on monetary policy and economic outlook to the US Congress on Tue-Weds (Senate hearing: Tue, 3pm, House of Representatives: Weds, 3pm). Elsewhere, we get China’s PMIs (Thurs, 1am and Fri, 1:45am), US Q4 GDP (Thurs, 1:30pm) and US Personal Income/Spending (Fri, 1:30pm) to occupy investors.

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