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

UK 100 called to open -35pts at 6370 following a sharp sell-off in equities on Wednesday. Potential for support to be found at the 6360 or 6330 levels, with 6300 as backup. June narrowing pattern now well in the past. Bulls looking to a bounce off 6360 while Bears happy with current downward pressure from global macro-issues. Watch levels: Bullish 6550, Bearish 6300

The negative opening call comes following bearish cues from Asia-Pacific but seemingly bullish ones from the US where the FOMC minutes indicated waning support for a September rate hike with most officials judging that the conditions for policy firming had not yet been achieved while noting that conditions were approaching that point.

With most Fed members up to now wanting to base a first interest rate rise since the financial crisis on macro data, it now seems that economic conditions may never meet the required standards. Inflation certainly looks set to remain low due to cheap oil (also looking set to stay cheap). Does this mean that policy makers may change their tune when it comes to assessing the economy’s readiness? Will a future decision be based simply on action vs. inaction?

Meanwhile, Asian stocks continued to fall off as concerns remain over growth in China with investors gauging the solidity of the market by looking at how involved the Chinese government is in propping it up. Intervention tempting retail investors into equities while a lack thereof being taken as a mass sell signal. The PBoC has injected a net CNY150bn (a number that’s easy to write, but almost impossible to comprehend) into its own open market positions this week – the details aren’t important, but the implied level of PBoC involvement is.  

In Europe, sources said Wednesday that Greek PM Alexis Tsipras appears to have decided that Greece should hold early elections. No decision yet as to when they may happen, but late September being widely suggested.

In focus today will surely be the fallout from last night’s FOMC minutes with investors continuing to ‘guess the date’ of a first US rate liftoff. Of particular interest will be the likely effect on Asian markets (a reapeat of 1997, perhaps?). in any case, it looks as if we’ve got until January 2016 to mull that one over.  UK retail sales this morning and US jobs data this afternoon both likely to contribute to the debate.

Crude prices now at 6 year lows after a massive, unexpected increase in US stockpiles last week added to bigger picture woes. In case you’ve been in outer space for the past 6 months, those including a potential deluge of Iranian oil that will pale in significance to what is already being pumped into the market by OPEC. WTI currently $40 while Brent just shy of $47. Will we see $30 oil before the year’s out?

It’s a warm welcome back to the party for Gold, now tickling $1140 on a return to favour as a straight down the line safe haven. With US and UK inflation seen to be almost immovable and high volatility in currency markets, Gold is providing a choice parking space for risk off investors looking to wait out the current storm. We missed you Gold.

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)

• Rank Group FY profit up 16%, lifts dividend
• Meggitt wins $39.8mn fuel cell contract
• Premier Oil secures relaxed debt covenants to mid – 2017
• Russia's Eurasia Drilling says H1 net income down 55% YoY
• WH Smith sees FY outcome slightly ahead of analyst expectations
• Phoenix Group appoints Henry Staunton as chairman
• TT Electronics says H1 underlying operating profit down 21%
• New World Resources H1 rev fell 17%
• Costain first – half revenue rises
• Kaz Minerals says H1 EBITDA down 55% to $88mn
• Premier Oil secures relaxed debt covenants to deal with weak oil prices
• Phoenix Group H1 oper profit down 49%