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

UK 100 Index called to open flat at 6365, with 6360 serving as support overnight to stem the downtrend from Friday’s 6490 highs. The Bulls are hopeful of a break above 6380 to overcome falling highs, while bears will want a breach of 6360 to keep the correction towards 6300 going. Nonetheless, the uptrend from 5900 lows end-September is intact with the 6300-6450 sideways shift likely serving as consolidation after the 10% rebound. Still potential for rally to resume and a revisit of 6600 or better. Updated watch levels: Bullish 6380, Bearish 6350.

The flat open comes after a mixed Asian session which followed a weak US and European close ahead of the US Fed policy update this evening. Raw materials-focused names weighed after soft US data added to US and global growth doubts. Declines in Asia led by Chinese equities on growth concerns (both corporate profits and GDP) which positive Apple (AAPL) results, especially in China, have been unable to quell.

On the positive side, Japan’s Nikkei posting gains on lower volumes after Alibaba (BABA) results gave a boost to part owner Softbank and with great anticipation of what both the Fed will do today and the BoJ on Friday. Australia’s ASX under a bit of pressure from lower commodity prices and despite a sharply lower AUD (good for exporters, miners) following disappointing Consumer Inflation (CPI) data which adds pressure on the RBA to cut rates and add to the looser monetary policy bias seen round the world.

US markets mostly lower on thin volumes as macro data continues to roll in very mixed indeed while the Fed deliberates (oh to be a fly on the wall). Still anything but rate-rise positive. Note also that two-year budget/debt ceiling deal failed to move US bourses much yesterday despite keeping congress open for business for the foreseeable future.

Corporate earnings from Apple (AAPL) generally seen positive as financials beat while sales came in a touch lower (hinting at higher prices for iPhones). Again, have a look at ARM Holdings (ARM), a stock much in focus over the past week or so and for good reason. The chip architect is intimately related to all things tech, especially smartphones, and incredibly sensitive to movements elsewhere in the sector. Twitter (TWTTR) shares were shot down (-12%) after market with the trendy social media Q4 revenue projections falling short of market expectations

Note Apple CEO Tim ‘Captain’ Cook remarking that were he to put his blinkers on and look only at the company’s numbers, he’d have no inkling of the ‘big trouble in shrinking China’ everyone’s been going on about recently while WPP’s Sorrell on Monday reiterating his ‘unabashedly bullish’ stance on the world’s #2 economy.

Elsewhere in corporate news, brewers SABMiller (SAB) and AB InBev (BUD) have applied to extend their merger discussions for another week, while aerospace parts maker Meggitt (MGGT) has delivered a profits warning. Barclays (BARC) has confirmed the appointment of investment banker Jes Staley as new CEO (are we returning to a BarCap focus?), while Lloyds (LLOY) Q3 Results show yet another PPI charge in the face of rising profits.

In focus today we have little of note bar the US Advance Goods Trade deficit seen improving slightly and of course the Fed policy update this evening.

Oil prices have taken another leg down amid more shelving of drilling projects (this time the victim being the Alberta oil sands) by Royal Dutch Shell (RDSb). Note this doesn’t appear to be down to the challenging nature of the project, far more likely a reaction to a rather bearish outlook for Crude oil. Is Shell now banking on BG Group (BG.) for more production opportunities?

Gold has little time left to stage a meaningful push back towards $1200, though the $1170 level was re-taken overnight with bullish bets increasing for a 5^th straight week. As such, there’s always the worry that buyers could be getting rarer now and unless Gold can push decisively higher soon, those with long positions could liquidate them to go in search of faster yielding positions elsewhere (the US Dollar?). That would weigh heavily on the yellow metal, putting a pullback below $1160 on the cards.

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UK Company Headlines: (Source: Reuters/DJ Newswires)

• Barclays appoints Staley as CEO
• Lloyds hit by further charge for insurance mis-selling
• British American Tobacco revenue hurt by currency fluctuations
• AB InBev, SABMiller extend takeover deadline to Nov 4
• Circle Oil finds gas at Sebou Permit in Morocco
• Trinity Mirror to buy rival Local World
• Meggitt warns on profits after energy business slumps
• Antofagasta cuts full – year copper output target
• Standard Life posts Q3 net inflows of $3.7bn
• Aggreko appoints managing director to Power Solutions business
• Petra Diamonds says remains on track for FY production outlook
• Next's third – quarter sales meet guidance
• British competition regulator provisionally clears BT/ EE deal
• Bwin.Party Digital says revenue for 9 months to September up 5%
• Globo says being investigated by UK's FCA
• Iofina appoints Hekking as CFO