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

UK 100 Index called to open +30pts at 7370, having rallied overnight, extending its bounce to above 2-week support-turned resistance at 7355, clearing yet another hurdle. This opens the door to a revisit of 7400 and maybe even record highs of 7448. Bulls need a break above 7375; Bears require a breach of 7355. Watch levels: Bullish 7375, Bearish 7355.

Calls for a positive open come courtesy of a weaker GBP as the UK prepares to officially trigger Article 50 to leave the EU, providing a helpful translational boost to the army of blue-chips with international exposure. Another up-leg in Oil prices (despite another US inventory build) is also helping buoy the key commodity space along with a surge north by economic barometer Copper.

Asian bourses have taken a positive lead from Wall Street with Australia’s ASX outperforming, just shy of 2yr highs after an overnight breakout on an IT sector M&A-fuelled rally as well as commodity sector strength. Japan’s Nikkei is, however, just holding above water as Energy sector gains and a weaker Yen, thanks to a dollar rebound, are troubled by property and financials.

Impressive macroeconomic data and a crude oil recovery saw US equity markets rally across the board as Trump policy uncertainty was made an afterthought by investors. Consumer confidence at a 16 year high helped all 11 sectors close higher on the S&P500, with Financials leading the way, while the Dow Jones snapped its 8-day streak of losing sessions as Apple led risers on the blue-chip index.

Crude Oil’s price recovery continued overnight as industry data reported a build just shy of the 2m barrels expected and Libyan supplies were significantly disrupted by conflict in the West of the country. This has been compounded with renewed optimism in the marketplace via increasingly promising rhetoric that OPEC and Non-OPEC members will look to extend their production cuts beyond the June deadline, as long as heavyweight producer Russia also commits to the agreement.

Gold is continuing its sell-off from Monday’s 1-month highs as the US dollar enjoys a healthy bounce from 4-month lows. The precious metal remains in a falling channel as investors shun safe haven assets, despite having attempted to engineer a breakout yesterday afternoon. With today’s political events unlikely to increase volatility significantly, the onus remains on FX markets for direction for metals (both precious and base).

In focus today will be the UK’s triggering of Article 50 to commence divorce proceedings from the European Union. Prime Minister Theresa May’s letter will be hand-delivered by UK Ambassador the EU Sir Tim Barrow to European Council President Donald Tusk at 12.30pm. At the same time as this, the PM will address MPs during PMQs. Both the tone of the letter and response from Tusk may be key in gauging how the next two years of negotiations pan out.

Macro data is yet again rather sparse, with notable releases few and far between. UK Consumer Credit is seen falling back after January’s rebound from 12-month lows although Mortgage Lending is seen higher and Mortgage Approvals holding around their highest since last March.

With UK inflation starting to blow hotter than the Bank of England’s 2% target, keep an eye on Feb UK Money Supply growth as this can be an early barometer of inflationary pressure.

This afternoon, US Pending Home Sales are expected to have bounced back in Feb, while the annual figure holds just above breakeven. This, before Weekly US EIA Oil Inventories provide oil traders with their weekly dose of spice after overnight API inventory data reported another build, albeit slightly lower than the 2m barrels forecast.

Away from Brussels, speakers of note include another raft of Fed members, including Chicago’s Evans (DZ Bank-OMFIF International Capital Markets Conference. Frankfurt, 2:40pm), Boston’s Rosengren (“Economic outlook” to the Boston Economic Club; 4:30pm) and San Francisco’s Williams (“From Sustained Recovery to Sustainable Growth: What a Difference Four Years Makes”; Forecasters Club of New York; 6:15pm).

To balance things out, ECB Chief Economist Praet delivers a keynote speech (“2017 Harvard Law Europe – US Symposium on International Financial Systems”; Frankfurt, 5.50pm).

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.

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

• UK insurer Saga’s full-year pretax profit rises
• Ryanair calls on Britain to put aviation at top of Brexit agenda
• TUI reiterates profit target on solid holiday demand
• Stagecoach says full – year earnings expectation remains unchanged
• Great Portland Estates raises £175m through issue of US private placement notes
• SIG says Meinie Oldersma to start as CEO on April 3
• Auto Trader appoints Nathan Coe as COO
• BP to sell more refineries and sharpen focus on retail outlets
• Dollar pulls higher on Fed talk, sterling slips on Brexit anxiety
• Gold slips on technicals as dollar firms on U.S. rate hike cues
• BHP Billiton says “China and emerging Asia expected to support steel demand growth” going forward
• Oil rises on Libyan supply disruptions, likely OPEC output cut extension