UK 100 Index called to open flat at 6935, having traded sideways 6930-6940 overnight. This protected yesterday’s bounce from 6890, a level turned supportive following Wednesday’s breakout above 2-month falling highs. Closing the week above is likely key. Bulls need 6950 overnight highs to be cleared to keep the Santa Rally towards 7135 October all-time highs alive. Bears likely need to see suggestions that 6900 will be troubled into the weekend. Watch levels: Bullish 6955, Bearish 6880.

Calls for a mixed European open (UK Index flat, DAX negative) come despite Asian bourses pushing north after yet another quartet of Wall St record closing highs helped by the European central bank extending its current QE bond-buying stimulus programme albeit at a slower pace  (but not a taper!). Markets already excited by the prospect of a fiscal stimulus wave via a Trump election look in-line to get more of both fiscal and monetary stimulus from next year - the best of both worlds for investors.

Japan’s Nikkei is higher thanks to yesterday’s ECB-inspired EUR plunge sending the USD higher and thus the Yen lower to the benefit of Japanese exporters. Australia’s ASX is posting more muted gains buoyed by gains in metals prices helping Miners although this is limited to base metals with gold lower,  hampered by the USD and the prospect of a US Fed rate rise next week.

Yesterday saw the first quadruple record close this month for US equity markets as the Dow Jones, S&P 500, Nasdaq and small-cap Russell 2000 all closed at all-time highs. Whilst gains for indices on Thursday were not as great the previous day, the Dow is fast approaching the 20,000 mark as Financials once again led the market to close 0.3% higher, whilst the Nasdaq outperformed the S&P, +0.4% to the latter’s 0.2%.

Despite a rather volatile day of trading, Crude Oil prices rallied to breakout of the week-long downtrend with Brent crude back above $54 and US crude above $51. Market sentiment today will be driven by expectations for tomorrow’s summit between OPEC and non-OPEC members, with the commitment of the latter pivotal for last week’s production cut deal to succeed. Many investors, however, will be looking at 5 confirmed non-OPEC attendees out of a possible 14 with some pessimism.

Gold continues to trade within a $1165-1178 sideways channel, although has bounced from the channel floor after a failed challenge at $1178 resistance shortly before yesterday’s ECB meeting. A rally this morning comes courtesy of a falling USD, however a continuation of the record-setting rally on Wall Street could put further pressure on the safe haven asset.

In focus today will be the continued fallout from the ECB’s QE extension/tapering (just don’t call it tapering), whilst macro-wise UK Construction output data is seen slowing from 0.3% to 0.2% MoM and moving into negative territory in the yearly figure. Also keep a keen eye on the BoE’s 12-month Inflation Forecast, released simultaneously at 9:30am. This afternoon’s US data is headlined by the University of Michigan Consumer Sentiment figure for December, seen increasing on last month, while Wholesale Trade Sales are expected to increase to 0.7% as Wholesale Inventories are seen unchanged.

A host of ECB speakers are scheduled today (Smets times two, Knot and Rimsevics), however the focus will be on EU President Juncker speaking at 9:45am andEurogroup head Dijsselbloem at 2:30pm for any update on the ongoing Italian political and banking saga.

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

• Tullett Prebon declares second interim dividend
• Daily Mail publisher to raise £315m from Euromoney shares sale
• Plus500 sees no business impact from FCA consultation paper
• UK electricity capacity auction for 2020/21 clears at £22.50 kW/year – National Grid
• Marshalls says confident of meeting 2016 expectations
• JKX Oil And Gas announces convertible bonds restructuring
• Fyffes recommends 751 mln euro takeover by Japan's Sumitomo
• UK watchdog defers decision on PPI claims deadline
• Oil extends gains on hopes for non – OPEC output cuts