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

UK 100 Index called to open +25pts at 7270 having recovered from Friday’s plunge to 7200, breaking back above intersecting support at 7250 to return the index to its 7250-7300 sideways range. Friday’s downside test may concern the Bulls whom likely need to a break above 7285 overnight highs for inspiration. Bears want to see this resistance hold firm, and another test of the 7250 zone. Watch levels: Bullish 7285, Bearish 7265.

Calls for a positive open come after another record close on Wall St and despite a poor start for the week in Asia. Fears of a fresh Scottish referendum (the Times) on independence have served to send the Pound lower against the Dollar (and Euro), providing an early translational boost to the UK’s blue-chip index, helping offset more M&A disappointment as LSE suggests it merger with Deutsche Böerse in jeopardy with competition concerns unlikely to be remedied.

Japan’s Nikkei is lower as the Yen holds up around recent highs while weakness in metals prices and banking hinders both it and Australia’s ASX’s Miners and Financials, even if Oil prices have rebounded. This as investors fret about whether Trump will deliver the goods on policy plans (especially regarding tax changes) in tomorrow’s address to congress, justifying the global stock rally since his election.

US indices closed higher on Friday as the Dow Jones notched its 11th consecutive closing high, its longest record since 1992, while investors await a key Trump address to Congress on Tuesday. Johnson & Johnson led risers on the Dow, helping it close 0.05% higher, as the S&P 500 (+0.2%) also closed at a fresh all-time high thanks to Utilities strength while the Nasdaq too finished up 0.2%.

Having fallen after the Baker Hughes Rig Count showed yet another weekly increase, Crude Oil prices have rallied in Asian trading hours as continuing reports of bullish positioning from institutional investors buoys wider market sentiment. Both Brent and US crude remain someway off last week’s highs of $57.30 and $55 respectively, however continuing OPEC compliance reports could help this week’s early rally.

On Friday, Gold closed at its highest level since the US presidential election in November as a weak USD and rising European geopolitical uncertainty saw investors increase holdings of the safe-haven asset. Before bullish flag patterns to $1280 can be completed the precious metal will need to overcome its 200-day moving average at $1260, although note an eagerly awaited address to congress by President Trump in the early hours of Tuesday could shed light on US fiscal policy, impacting the greenback.

In focus today, apart from the build up to tomorrow’s Congressional address by Trump (2am) will be Eurozone climate indicators (10am). While each of the Economic, Business, Industry and Services segments are expected to deliver firm readings for February, the final print for Consumer is likely to confirm some deterioration.  

This afternoon, economists expect a rebound in January for US Durable Goods orders (1.30pm), even if ex-Transport growth holds steady, while the Dallas Fed Manufacturing Index (3.30pm) will likely come in lower for February.

Speakers/events include the meeting of EU Energy ministers (8am) this morning followed by the Swiss National Bank (SNB) head Zurbruegg (12.30pm), the ECB’s Weekly QE update (2.45pm) and, lastly, the Fed’s Kaplan (voter, neutral; 4pm) who participates in a moderated discussion with audience and media Q&A.

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

• Britain cuts discount rate for personal injury claims in blow for insurers
• UK builder Persimmon says 2017 forward sales rise after profits surge
• Centrica extends outage at UK's Rough gas site starting Feb.26
• Bunzl says FY operating profit was £525.0m, up 5%
• Bunzl names Lloyd Pitchford as non – executive director
• Keller Group says Eva Lindqvist to join board
• Dechra Pharmaceuticals says half – year revenue up at £172.6m
• Acacia Mining's west Kenya project inferred to have high – grade gold
• Hiscox Ltd says full – year pretax profit up 64%
• Underwriter Hiscox considers two EU countries ahead of Brexit
• Admiral says to postpones FY results to March 8 after Ogden rate announcement
• Mccoll's Retail Group says full – year revenue up 1.9%
• Primark owner AB Foods maintains earnings guidance
• Oil gains on supply cuts, but rising U.S. output caps gains
• London copper prices ease, but supply worries simmer