UK 100 Index called to open +10pts at 7600.

Calls for a positive open come after a strong overnight performance for Commodities, most notably copper at a 3.5 year high, may help the UK 100 ’s heavily weighted Oil and Mining sectors to make a positive return from an extended Christmas break, while a short-lived Euro sell-off on Christmas Day amidst thin trading volumes will see the European currency being closely watched at the reopening of markets following the long weekend for traders.

Despite Australian markets rallying close to a 10-year high earlier in the session, a negative lead from Asian equities, most notably with losses for Chinese and Hong Kong after a weaker YTD Industrial Profits print overnight while Japan’s Nikkei treads water around breakeven, may take some of the shine off the UK Index open.

Crude Oil prices have retreated as the key Forties pipeline in the North Sea moves closer to a full reopening after moves were made to gradually restart the flow of oil from the pipeline, offsetting a sharp move higher on Boxing Day following an explosion at a Libyan pipeline. Global benchmark Brent Crude retreated from a 2.5 year high above $67 a barrel, while its US equivalent has fallen back below $60 having broken through the key psychological level for the first time since June 2015 in the previous session. Similarly, Gold was positive and close to a fresh 4-week high on an expected increase in demand from China, echoing broader gains for base metals.

US equity markets closed lower on Boxing Day as concerns about iPhone X demand saw Apple shares fall 2.5%. The company was the biggest laggard on the Dow Jones, with the 30-stock index closing just shy of breakeven while the Tech-focused Nasdaq finished a third of a percent offside on reports that Apple will have to slash its iPhone X sales forecast. The Tech rout also hit the S&P 500, closing 0.1% lower as Energy and Real Estate strength failed to offset the weaker Tech sector.

In focus today amidst a holiday-lightened macroeconomic calendar will be UK BBA Mortgage Approvals (9:30am), expected to rebound from October’s 13-month low, however are still seen lower than previous readings in 2017, reflecting a falling trend in official government statistics since July.

This afternoon, US Consumer Confidence (3pm) is expected to cool in December from a 15 year high, while Pending Home Sales (also 3pm) will look to extend an October recovery from a 3-year low a month earlier.