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

UK 100 Index called to open flat at 7325, holding yesterday’s bounce from 7300 but having traded sideways overnight. Bears are concentrating on an inability to conquer 7340 overnight; Bulls point to the longer-term uptrend still in play. Bulls need a break above 7340 to overcome 36-hour falling highs, Bears want a challenge of 3-month rising lows at 7310. Watch levels: Bullish 7340, Bearish 7320

Calls for a flat European open come as investors digest another terror attack and await the US House of Representatives’ vote on overhauling Obamacare. Without this, Trump can’t implement the more exciting pro-growth stimulus policies markets have priced in since his election. Doubts about a favourable voting outcome are the reason for the recent market wobble, although a solid finish on Wall St restored confidence.

Japan’s Nikkei is flat as a rebound in Oil helps the Energy sector, offsetting the hindrance from Yen strength. Australia’s ASX is outperforming, helped by higher oil prices and metal prices finding support – economic barometer Copper after a resurfacing of supply disruption concerns and precious metals in light of the terror event.

US equity markets rebounded from Tuesday’s worst session since November to close mostly higher overnight. Both the S&P500 and Nasdaq indices closed higher on account of strength in the Tech sector, helping to offset Telecoms weakness, although gains for Apple on the Dow Jones could not offset the significant losses of sports brand Nike (-7%) as the Dow Jones closed marginally lower.

Crude Oil  has staged a recovery overnight after Brent Crude briefly dipped below $50 per barrel for the first time since OPEC’s production cut agreement was reached in November. A build in US inventories to fresh record highs also saw US Crude touch $47, although now both benchmarks have rallied to $51 and $48.50 (Brent/US respectively). Continued US dollar weakness is helping to induce bullish appetite, although intersecting resistance at the aforementioned levels remains a hindrance.

Gold has edged back from yesterday’s 3-week highs of $1251 as investors return to riskier assets and the US dollar finds support overnight, however abundant political uncertainty (US congressional vote, French elections) is supporting the price above $1245. The 200-day moving average and 8-month falling highs, currently at $1248 and $1252 respectively, will need to be overcome for the precious metal’s March rally to mount any charge towards $1260.

In focus today, after the recent market wobble on Trump trade concerns, will be the US Lower House vote on repealing and replacing Obamacare. This is a major hurdle for the administration before being able to implement the stimulus policies that markets have priced in since the election.

Data-wise, UK Retail Sales (incl. Fuel) for February are expected to rebound 0.4% after January’s -0.3%, still recovering from -2.1% in December, the weakest in almost six years. Annual growth should accelerate back to 2.6% from 1.5% in Jan, its slowest in over three years.

This afternoon, expect stable US Weekly Jobless Claims, higher US New Home Sales (back to 12M average, on-trend) while the Kansas City Fed Manufacturing Index holds firm and Eurozone Consumer Confidence improves, albeit but remaining negative.

Speakers and events this morning include the ECB Monthly Economic Bulletin (9am) followed by BoE Deputy Governor Broadbent (9.30am) who gives a speech at Imperial College London.

The afternoon’s line-up comprises Fed Chair Janet Yellen (voter, dove; 12.45pm) giving the opening keynote speech at a conference in Washington. The Fed’s Kashkari (voter, dove; 4.30pm) delivers remarks at the same conference later while colleague Kaplan (voter, neutral; 11pm) speaks on “economic outlook and monetary” in Chicago tonight.

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

• Gold below 3 – wk peak as dollar recovers; Trump policy in focus
• Ted Baker says full – year pretax profit increases 4.4%
• GVC to pay second special dividend for 2016 on favourable trading, refinancing
• UK’s Kier reports higher profit, forms residential JV
• Kier Group says Phil White to retire as chairman
• IG Group says Q3 revenue down to £117.4m
• Clothing retailer Next ‘extremely cautious’ about year ahead
• Halma plc sees FY adj pre – tax profit in line with market consensus
• Major oil companies open their wallets in Gulf of Mexico bidding
• London copper edges up; zinc disruptions climb
• Oil bounces off November lows, but bloated US stockpiles pressure market