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

UK 100 Index called to open +10pts at 7265 having rallied overnight for another bullish test of 7280 which again held firm as resistance. Of note since is a breach of 2-day rising support at 7270 which could lead to a retrace towards yesterday’s 7240 lows. Bulls likely need a more convincing test of 7280. Bears probably require a breach of 7260. Watch levels: Bullish 7285, Bearish 7260.

Calls for a positive open come after another record close on Wall St (best run in 30yrs) and in spite of another mixed Asian session overnight. Investors cautiously optimistic about Trump’s Congressional address, desperately wanting more clarity about the policy ideas fuelling this rally.

Those looking for more on US Tax changes, however, may be left wanting after Trump told the press  yesterday that this depends on the cost of Obamacare’s repeal, meaning more time required. Expect much more about increased military spending at the expense of agency budgets, although anything on infrastructure spending could be enough to make up for silence on tax to sooth any bullish nerves.

Note the USD off its rebound highs, even after hawkish chat from the Fed’s Kaplan that saw bond markets increase the probability of a March Fed rate hike to 50%. This before Yellen speaks on Friday, ahead of the Fed’s blackout period in the run up to its mid-month policy update.

Japan’s Nikkei is higher in spite of a stronger Yen and weaker industrial production data, buoyed by stronger retail sales growth, gains from Oil and Mining and some M&A from Softbank. Down under, Australia’s ASX is slightly offside after a poor showing for banks and Miners and a stronger Aussie dollar following a narrower current account deficit.

The Dow Jones extended its record run of closing highs to 12 yesterday, marking the first time the index has strung together as many record finishes since 1987. Caterpillar led a wider Infrastructure rally on the Dow in reaction to Trump’s plans to disclose details of his fiscal stimulus tonight, which helped the index 0.1% higher, while the S&P and Nasdaq also finished higher by 0.1% and 0.3% respectively.

Range-bound Crude Oil prices suffered a third failure to overcome one week falling highs resistance yesterday and have subsequently sold off to rising support as a surging US dollar hampers investor sentiment. Bulls will be hoping for a US crude bounce from $54 rising lows support while Brent crude’s early test of $56 is just that, with a recovery in the offing to mount a fresh test of resistance later today.

Gold has recovered from a late sell-off to $1251 yesterday as a resurgent US dollar based on hawkish Fed speak spooked investors in the non-yielding safe haven asset. The precious metal has bounced as the greenback rally cooled and is now testing falling highs resistance just shy of $1255 with a breakout needed to better yesterday’s fresh 3-month high figure of $1264 and keep multiple bullish flag patterns to $1280 valid.

In focus today, as well as the build up to tonight’s Congressional address by Trump (2am GMT) will be the second estimate for US Q4 GDP figures. The president will likely provide some long awaited clarity on a portion of his administration’s fiscal stimulus, using the primetime slot to announce an increase in infrastructure spending, although those hoping for talks of tax cuts may be left disappointed. Trump is also likely to formally ask Congress for approval of a $54bn increase in defence spending paid for with agency cuts while potentially also revealing his solution to Obamacare.

The second reading of US Q4 GDP is expected to see an uptick from the provisional reading from 1.9% to 2.1% as the US economy begins to feel the Trump effect. This remains a way off Trump’s 4% target, however it remains early days, while expectations of an increase to Personal Consumption will help to bolster calls of a growing US economy.

A multitude of Fed speakers are being paraded before the press this evening before the president’s speech and the traditional blackout period for the Fed before their March 15 FOMC meeting which begins in a week’s time. Starting at 5:45pm with George (non-voter), we then see a double helping of Williams at 7:30pm and 8:30pm (non-voter) split by Harker at 8pm (voter; hawk) before being rounded off by Bullard (non-voter; dove) of last month’s one rate hike for 2017 prediction fame.

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

• Oil firms on record OPEC output cut compliance
• UK's Greggs beats forecasts with 10% profit rise
• UK's Interserve falls to loss, suspends dividend
• Go – Ahead raises interim dividend by 6.5% to 30.17p
• Copper slips, attention shifts to Trump speech
• Miner Fresnillo's FY profit jumps 512% on higher output, prices
• Virgin Money says full – year underlying pretex profit up 33%
• Provident Financial posts FY adjusted EPS 177.5p
• St James's Place says FY profits buoyed by rising funds income
• Meggitt reports 13% rise in adjusted profit
• GKN says will grow ahead of market after profit rises 12%
• Boohoo raises full year revenue guidance
• Taylor Wimpey sees good start to 2017 after FY profits surge
• TalkTalk TV to deliver new TV experience with Ascendon
• British regulator to force BT to cut landline – only bills
• BHP Billiton concludes offer as part of its $2.5bn bond repurchase plan