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

UK 100 Index called to open +15pts at 7310, still in a bearish rising wedge pattern, but at least now 7300, making a bullish challenge on 6/7 Feb highs of 7315 overnight, retracing more of that early month sell-off and breakdown. Bulls still need a break above 7325 overnight highs. Bears need to see 1-week rising support at 7300 in jeopardy. Watch levels: Bullish 7325, Bearish 7300

Calls for a positive start to the week come as Asian equities (excl. China and  Hong Kong for Lunar New Year) built on last week’s global recovery, even if Wall St closed well off highs (Mueller Russia indictments) to close mixed on Friday into a long Presidents’ Day weekend that is likely to sap volumes today.

UK Index supported by USD off 3yr lows, lows helping GBP edge further from last week’s highs to offer less resistance for UK blue chips. Note Australia’s ASX higher, but Miners in the red, as Copper and Gold trade off their highs, and in spite of Oil trending higher. UK Housebuilders may like stronger Rightmove House Prices in Feb

Corporate news this morning: AstraZeneca’s IMFINZI gets US FDA approval for Stage 3 non-small cell lung cancer (after chemo/radiation), having showed showing 11.2 month improvement in progression free survival vs placebo. Reckitt Benckiser Q4 Like-for-like sales growth in-line, Europe/N. America a touch ahead, Developed Markets slower; Health ahead, others divisions light; Vows change in 2018 after flat 2017.

Petra Diamonds warns on FY profits, again. Enquest expects material production growth in 2018, increased cash flow and lower capex, helping reduce debt. Spectris FY 2017 Sales +6%, Op profit +8% Fidessa FY 2017 Revenues +7%, Adj net profit +11%, FX boost.

SAGA appoints Patrick O’Sullivan as new Chairman, in same position at Old Mutual since 2010. McColls retail says Palmer & Harvey collapse still causing disruption, impacting sales performance. N Brown appoints Matt Davies Chairman-elect (from Tesco UK & RoI, prev Halfords, Pets at Home).

US equity markets finished the week positively to notch their best weekly performance since 2013, however closed off their highs after indictments were brought against 13 Russian nationals by Robert Mueller. Both the Dow Jones and the S&P 500 closed a handfuls of points higher, the former having been over 200 points higher earlier in the session while the latter had been 0.9% higher. Both indices were led by Healthcare names as the Tech-heavy Nasdaq closed 0.2% lower.

Gold has continued to retreat from Friday’s highs of $1361.8 as the US dollar continues its climb from 3-year lows, however with the greenback struggling to better Friday’s highs, the precious metal is trading around rising lows support of $1347. The greenback will continue to dictate Gold’s performance, however the Presidents’ Day holiday in the US and Lunar New Year in Asia will likely result in low volumes today.

Crude Oil benchmarks are trading higher on protracted US dollar weakness and an unchanged Baker Hughes Rig Count on Friday, however have retreated from overnight highs as the greenback attempts to overcome Friday’s highs. Global benchmark Brent is back from highs of $65.6 with rising lows support at $65.1, while US Crude has retreated from $62.5 overnight highs with support at $62.

In focus today, on a quiet start to the week on account of holidays in both the US (Presidents’ Day) and Asia (Lunar New Year), will be the Eurogroup meeting in Brussels. The meeting of Eurozone Finance Ministers will cover a range of topics, however two key talking points will be the appointment of the next ECB Vice President and a review of Greek debt restructuring.

On a day of virtual radio silence for macroeconomic data, Eurozone Current Account (9am) and Eurozone Construction Output (10am) are the only picks of note.

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