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

UK 100 Index called to open +15pts at 7415, holding both yesterday’s 7390 breakout and now rising support since 17 April. Bulls need a break above overnight highs of 7425. Bears require a breach of aforementioned rising support at 7405, then the 7390 breakout. Watch levels: Bullish 7425, Bearish 7400

Calls for a positive open derive from gains in Asia overnight and despite a mixed close on Wall St. Sentiment supported by optimism about earnings season, even if tech giant Alphabet saw a muted response to its Q1 report card, spending much more than expected, denting the sector. On the topic of sanctions and trade wars, concerns continue to ease after President Trump suggested a possible reprieve for Russian aluminium giant Rusal.

Overnight, lower metals prices (industrial rather than precious; strong USD to blame) saw the Miners (read-across to UK Index peers?) hampering Australia’s ASX although higher oil prices helped the key Energy sector. Higher US Treasury yields and the impact on borrowing costs remain on traders’ radar.

In corporate news, UK Index banks may be sensitive to Q1 results from Santander which posted net profits +10% (+22% ex-FX moves), on revenues +1%, beating consensus and implying margin expansion, but UK profits 21%, still struggling with bad loans and higher regulatory costs.

St James’s Place Q1 net fund inflows +31% YoY (gross +21%), 96% client retention, AUM +12.6% YoY to $89.9bn (down vs Q4), confident in FY gross fund inflow guidance +15-20%. AstraZeneca reports high level results from Phase III ARCTIC trial in third-line non-small cell lung cancer. Melrose updates on GKN Q1 trading (direct update from GKN mgt), highlighting revenues and profits below that of last year.

Anglo American Q1 copper production +9% YoY, diamonds +15%, Platinum +7%, Iron ore positive excluding Minas Rio suspension. LSE Q1 total income +13% YoY, info services +16%, LCH +18%, Capital markets +14%, Tech -5% organic/constant FX; forecasts 2018 EBITDA $300-400 lower. Petrofac to sell project for deepwater offshore vessel for $190m. QinetiQ to buy German aircraft training business for €70m.

In Commodities, Oil has rebounded from earlier lows to trade fresh highs at $69.21 (WTI) and $75.13 (Brent), evidently not too spooked by Trump’s aggressive Twitter comments on artificial OPEC pricing. Aluminium has retreated further on news that US authorities were mulling throwing Russian Rusal a lifeline on sanctions if owner Oleg Deripaska sold his majority stake. Gold has bottomed out at $1322, helped by the USD coming off its highs, reversal, perhaps supported by US 10yr Treasury yields edging even closer to the landmark 3%.

In focus today will be German IFO Surveys (9am) where Current Conditions, Expectations and the Business Climate are all forecast lower in April, the latter extending its decline from a record equalling peak in January. The Euro and German DAX equities could be sensitive to this. UK CBI Orders (11am) are expected higher, however, here is no consensus for CBI Q2 Business Optimism.

As for US data this afternoon, Housing Prices (2pm) are forecast to continue growing, albeit at a slower pace. Consumer Confidence (3pm) and New Home Sales (3pm) see consensus pencilling in lower numbers, however, the Richmond Fed is seen ticking back higher.

Tonight, consensus us projecting API Oil Inventories (9pm).to show a 1.3m barrel build in crude stocks last week (after a drawdown the previous week), possibly putting pressure on oil prices which nonetheless continue to climb towards $80 (Brent) on the prospect of tight supply vs rising demand.

US Corporates reporting results today (6 Dow components) include Chubb, 3M, Amgen, Caterpillar, Coca Cola, Verizon Comms, Xerox , Lockheed Martin, Texas Instruments, Eli Lilly and Freeport McMoRan, Travelers, United Tech and United Tech.

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.