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

UK 100 Index called to open +25pts at 7740, testing recent highs which increases the chance of a break-out that extends the bullish reversal from last week’s lows. Bulls need a break above 7745, if not 7750 (falling highs), while Bears require a breach of rising support at 7710. Watch levels: Bullish 7745, Bearish 7710.

Calls for a positive start come after a resolution of the US government shutdown resulted in a strong close on wall St that Asian bourses built on on overnight. Oil off its lows, thanks to bullish OPEC commentary and a weak USD is also helping, although GBP’s flirt with $1.40 remains a hindrance along with some more mixed UK retail sector results may revive High street concerns.

Despite mild gains for Miners down-under, and a mixed performance for metals, note Copper finding support after a tough start to the year. Note the combination of Energy and Miners equates to a not insignificant 24% of the UK 100 index supported by optimism following yesterday’s IMF global growth updates.

In major UK corporate news this morning: the UK Competition & Markets Authority (CMA)  provisionally finds Fox taking full control of Sky not in public interest due to media plurality concerns. Prudential to sell Prudential Vietnam Finance for $151m. easyJet Q1 total revenues +14.4%; passengers +8%; Rev per seat +6.6%; capacity +5.5%, load factor +2.1pts to 92.1%; costs -1.6%.

Superdry CFO Nick Wharton, to retire; succeeded by Ed Barker, currently Director of Grp Finance, and previous interim CFO at Sainsbury. Marston’s 16-week sales/earnings rise but snow hits like-for-like sales, equating to a £1m hit to profits. Pets At Home Q3 revenues +9.6%, like-for-like +7.2%, all pre-exceptional financial guidance unchanged. N Brown has good Q3; FY guidance unchanged, but shape of results (margins), group costs slightly lower, tax rate higher. Computacenter to buy back 8.5m shares via tender offer for £100m (1170-1260p per share).

US equity markets once again closed at record highs, with the Dow Jones joining peers in record territory, as US Senate Republicans and Democrats reached a deal to end the US Government shutdown; the 30-stock index climbed over 140 points as Goldman Sachs and Home Depot led risers. The tech-focused Nasdaq outperformed, climbing almost 1%, while the S&P 500 was lifted by Energy and Telecoms sectors.

Note, Netflix shares climbed 9% aftermarket as the online, on-demand video services announced stronger than expected subscriber growth despite increasing the price of subscription.

Crude Oil benchmarks have regained key handles as a result of bullish OPEC commentary and a continued weaker US dollar. Global benchmark Brent has climbed back above $69 a barrel, reaching as high as $69.6 overnight, while US crude is trading above $64 a barrel. API Inventory data overnight (9:30pm) will look to continue an impressive run of draw-downs, currently standing at nine consecutive weeks.

Gold is challenging resistance at $1338 as the US dollar continues to fall, despite the temporary resolution of the US Government shutdown. The precious metal’s climb from $1329 lows has hit a hurdle at Friday’s highs, with any successful breakout opening the door towards 2018 highs of $1244.

In focus today will be the first full day of the World Economic Forum from a very snowy Davos.

A plethora of CEOs (Bank of America, Barclays, Citi, Credit Suisse, Uber, WPP), the head of the IMF Christine Lagarde, Canadian PM Justin Trudeau  and Indian PM Narendra Modi are the pick of the first day’s speeches, although commentary from other major players in global economics on the army of media outlets in attendance at Davos will also be closely watched.

In terms of macro data this morning, UK Public Sector Net Borrowing (9:30am) is expected to narrow in December, reflecting a seasonal trend, German ZEW Surveys (10am) are both seen further alongside their Eurozone equivalent, and UK CBI Trends data (11am) are expected to retreat from 25-year highs.

This afternoon, the US Richmond Fed Manufacturing Index (3pm) is seen falling for a second straight month after November’s record reading, while Eurozone Consumer Confidence (also 3pm) is expected to further its first foray in positive territory since the turn of the millennium.

Away from Davos, the only real event of note will be the Senate hearing for Trump-nominated Fed Governor Goodfriend (3pm), expected to take place after a temporary resolution to the US Government shutdown was reached yesterday evening.

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