With the FOMC rate verdict due later today, there's a cautious mood creeping into equity markets as although a 25 basis point hike is widely expected, there's little consensus as to just how long the aggressive stance over interest rates will now continue for.

The MPC meeting minutes due next Wednesday will provide additional direction here, but anything that reinforces the need for a quick reduction is yields on cash deposits could again offer further support for stocks.

We're looking at a somewhat flat start to the week. Oil prices look set to play a key role in directing equities.

Although consensus is that the next move will be downward, it still seems as if this is going to be some time away.

Oil prices creeping back towards the key $60 mark may well provide some support for the petrochemicals sector.

Equity markets finished last week on an upbeat footing but the resurgent price of oil and the fact some Asian markets have been closed for the week's opening session to mark the Chinese New Year may make further direction difficult to find in the short term.

Upbeat earnings news left Wall Street with a triple digit gain through yesterday's session and this looks set to lift European equities in early trade.

The prospect for some profit taking ahead of the weekend break doubtless remains.

(That) may offer further indications as to the threat posed by inflation and precisely when we might see the FOMC tighten interest rates further.