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

UK 100 Index called to open flat at 7375 (ex-divs -4.85pts), holding yesterday’s bounce from 7310 but back from an overnight test of 7385 7-day highs. Bulls will be hoping for a bullish break from the 7365-7372 sideways range of the last 5 hours in the hope that a test of 7400 can open the door to 7448 record highs. Bears need a breach of the 7365 channel floor to allow for a retrace to this week’s 7340 rising lows. Watch levels: Bullish 7375, Bearish 7365

Calls for a flat open come after a mixed US close (S&P & Nasdaq up; Dow Jones lower) and a similar showing from Asia overnight. While Australia’s ASX benefits from the oil rebound and buoyancy among metals, extending its recent breakout, Japan’s Nikkei is failing to derive any benefit from this or a weaker Yen. GBP/USD off its overnight best levels may help UK blue-chips.

After all the fuss about the UK triggering Article 50 yesterday, and opposition to PM May’s attempt to link a trade deal with security, focus has reverted to central bank policy outlook. This after media reports the ECB is concerned about misinterpretation of its last message (not hawkish it says), and how it is now reluctant to change its message end-April for fear of adding fuel to the fires of misunderstanding. Note, some optimism about the US administration trying another go at the Healthcare bill next week.

US equity markets put in a mixed performance on Tuesday despite outperformance from the Energy sector, with the Dow Jones index closing lower on account of continued weakness from names at risk of Trump legislation inaction (Healthcare, Financials). Meanwhile, the S&P500 edged higher as aforementioned Energy names led four other sectors higher, while the Tech-focused Nasdaq once again outperformed its peers, up 0.4%.

Crude Oil is trading at a 2-week high as US Government EIA Inventory data showed a lower than expected build, while accompanying metrics (Distillates, Gasoline) showed a larger than expected drawdown. Global benchmark Brent Crude is now approaching resistance at $52.70 as the rally from last Monday’s lows continues, while the US benchmark looks to regain a $50 per barrel handle for the first time since 16 March.

Gold’s retracement from Monday’s March highs has extended overnight as the US dollar rebound from 4-month lows continues. However, the precious metal may be relieved of some pressure as the US Dollar index approaches resistance, while the ECB looking to ease hawkish fears may help to increase appetite for the non-yielding safe haven asset.

In focus today will be evolution of the UK’s Article 50 triggering/Brexit story, as both camps set themselves up for two long years of negotiations to unravel 40 years of marriage.

Macro data comprises Spanish CPI Inflation (eased in March?) at the European stock market open followed by Eurozone Confidence prints at 10am, expected broadly unchanged. With European Central Bank policy in focus as policymakers look to ease hawkish fears, German CPI is expected to fall back from February’s highest reading since August 2012, ending a 10-month improvement. This could help keep a hawkish German contingent at the ECB at bay, for now.

Stateside, the final reading of Q4 annualised GDP of 2.0% is expected a tick higher than the second estimate of 1.9%, but down from Q3’s 3.5%. Inflation wise, while the GDP price index is seen confirmed having accelerated to 2.0%, PCE is forecast to have eased a touch towards 2% and Core still well below target at 1.2%.

As if we hadn’t had enough Fed speakers this week, brace for another raft with the likes of Mester (2.45pm; non-voter), Kaplan (4pm, centrist voter), Williams (4.15pm, non-voter) and Dudley (9.30pm, dovish voter). Note Kaplan and Williams have already spoken this week, the former urging a gradual pace for hikes while Williams doesn’t rule out more than three hikes this year. On the whole though, rhetoric has been balanced.

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

• AO World raises £50m through placing
• Britain does not expect £50bn Brexit bill (Brexit minister David Davis)
• Carr's Group expects FY performance to be significantly below existing expectations
• British Land gets go ahead for £400m Kingston development
• Imperial Brands confirms on track to meet earnings expectations for half year results
• SSE says 2017/18 dividend cover to be at lower end of guidance
• Petra Diamonds announces proposed $600m notes issue and debt restructuring
• William Hill appoints Ruth Prior as CFO
• Genel deepens annual loss after reserves downgrade
• Vedanta Resources to extend executive service agreement of its CEO until August 31
• Bowleven says Billy Allan to be replaced as chairman by Christopher Ashworth
• Volkswagen says US approves sale of modified diesel vehicles
• Lloyd's of London to set up Brussels hub by Jan 2019
• Tesco target Booker sees sales growth ease
• CMC Markets sees lower net operating income in 2017
• LSE launches £200m share buyback
• DFS Furniture's HY revenue rises 6.8% to £379.9m
• Hilton Food reports FY operating profit of £34.3m
• Royal London Mutual Insurance Society profit up 16%
• London copper slips in thin trade on stronger dollar
• Oil edges up on Libya disruptions, but bloated US market still weighs
• Gold edges down on stronger dollar, but political risks support