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

UK 100 Index called to open +15pts at 7335, after finding support at 7310 overnight to maintain the trend of rising lows since yesterday’s base. That said, intersecting highs resistance from end November still looms large at 7370. Bulls need a break back above 7340; Bears a breach of 7310. Watch levels: Bullish 7345, Bearish 7310.

Calls for gains at the open stem from a negative reaction by GBP to news of a breakthrough in UK-EU Brexit negotiations (buy the rumour, sell the fact?), helping boost sentiment towards the UK Index 's many internationally exposed blue-chips. Also helping is a strong session in Asia after stellar China trade data (exports growth twice as good) appeasing worries about a credit bubble and curbs that would impact growth.

We also had a positive session in the US thanks to a 2-week debt ceiling extension, continued optimism about tax reform and an ongoing tech rebound, extending the dollar’s recent bullish reversal. In turn this is helping Germany’s DAX outperform via an extension of recent and reciprocal EUR weakness, something exacerbated by yesterday's GBP rally in anticipation of today's breakthrough news.

UK Index Banks may like an element of Brexit clarity. UK Index Miners may benefit from the double whammy of China trade data and a weaker GBP vs USD as Sterling gives up overnight highs, not convinced by the Brexit deal, and the Dollar gains more ground on tax reform optimism and aversion of a government shutdown. Oil majors may like the weaker UK currency and oil prices holding yesterday’s bounce.

In corporate news, International Consolidated Airlines says BA to launch new flexible benefits pension scheme with new DC scheme, closing main DB scheme (£2.8bn deficit). Proposed merger of Vodafone Malta and Melita terminated. Berkeley Group upgrades 2yr and 5yr profit guidance.

US equity markets closed higher across the board on Thursday as the Tech sector extended its rebound from lows and the government agreed an extension to its debt ceiling. This rebound helped the Nasdaq to outperform, while both the Dow Jones and S&P 500 closed 0.3% as large-cap names led stocks higher on the former, while the Tech sector led the latter.

Crude Oil prices have traded sideways overnight having recovered from Wednesday’s inventories-based sell-off, however both major benchmarks remain subdued by week long falling highs resistance. Brent crude trades $62.8, looking for a breakout from $62.9, while West Texas trades at $56.6, less than $0.1 from resistance.

Gold has bounced from overnight 4-month lows having seen its 2-week sell-off continue on Thursday. The precious metal will likely be driven today by US economic data this afternoon, as it looks to extend its bounce from $1244 lows.

In focus today will be the fallout from an 11th hour Brexit deal between the UK and EU, sufficient progress having been made on the Irish border issue, clearing the path for the second round of negotiations and, most crucially, the beginning of long overdue trade talks. Subject to a confirmation vote at next week’s 14-15 December summit in Brussels, things are about to finally move on.

Across the Atlantic, investors are also anticipating the November US Jobs Report (1:30pm) and the all-important Non-Farm Payrolls print which, like ADP on Wednesday, may show a normalisation after October’s storm related jump. That said the US jobs market is the least of Trump or the Fed’s worries, with inflation more of a sticking point. In which case wages growth may again steal the show.

Other data of note today includes UK Industrial, Manufacturing & Construction Production (9:30am), with Industrial and Manufacturing both seen flat on a monthly basis whilst accelerating to 2017 highs on a yearly basis, while Construction is expected to return to monthly growth and rebounding from an 18-month yearly low. This afternoon, the UK NIESR GDP Estimate (1pm) is expected to show a slight downward revision while the US University of Michigan Sentiment (3pm) turns back towards October’s 13-year high reading.

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