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

UK 100 called to open -25pts at 6110, in retreat from Friday’s close but still well off its 1-month base lows of 6060 from which we have bounced on the last two Fridays. Bulls see potential for a rebound via a double-bottom reversal towards 6350 if we can get above 6200. The bears are quite rightly still pointing to the trend of falling highs since 2016's highs of 6430 in late April. Watch levels: Bullish 6135, Bearish 6100.

The negative open comes in spite of a positive Asian session to start the new trading week as disappointing China data from the weekend begins to gain traction to overshadow gains in Japanese shares. The latter is derived from Yen weakness following a worsening in deflationary Producer Prices data that will keep pressure on the Bank of Japan (BoJ) and could signal a weak GDP print mid-week. Earnings reports and hopes of a delay to another sales tax hike also helping.

We note, however, buoyancy in commodity prices - especially oil, pushing fresh highs - faring rather well in the face of USD strength inspired by US macro data on Friday, supported by another drop in the US rig count. Note some EU markets closed due to Whit Monday Holiday which may concentrate trading on UK and US bourses..

China data delivered misses across the board for Industrial Production, Retail Sales and Fixed Asset Investment which suggests a surprise loss of momentum adding weight to arguments that the economy is slowing and struggling amid transition from exporter to consumer. This may prove a hindrance for mining equities today demand for whose wares will be seen as reduced.

US markets had a risk-off afternoon on Friday with energy and financials underperforming. Macro data nonetheless came in encouraging with Retail Sales coming good and Consumer Confidence posting its highest reading for 12-months in May. Note the Fed’s Williams now seeing 2 - 3 rate hikes this year, following a couple of decent bits of data.

The Baker Hughes rig count was also price positive for oil with another drop in the number of operational US drilling rigs - an 8th straight weekly decline - serving to reinforce existing supply issues. Brent has since made a strong breakout above $48 while WTI is struggling to better $47. Note a reduced spread between the two oil markers.

A USD taking a pause from its May rebound is putting the shine back on to some metals with Gold testing $1280 and Copper $46. It could be a different story for Silver with a potential descending triangle pattern in formation, yet an encouragingly bullish daily candle could give it enough momentum to break out upwards this week. Note also Silver’s daily RSI testing its May falling highs this morning.

In focus today, will be the fallout from the Chinese weekend data and what it means in terms of growth and stimulus. On account of the  Whit Monday Holiday some EU markets are closed which means no data until the afternoon when we get updates on US Empire State Manufacturing and NAHB Housing, the former seen pulling back while the latter edges higher -  supportive of Friday's jump in consumer confidence. .

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)

• ICAP FY profit falls 11%

• Developer British Land's FY net asset value rises

• Victrex says H1 pretax profit down 12%

• Lonmin reports profits after cost savings ahead of target

• Crest Nicholson says on course for £1bn revenue in 2016

• BP Doubles Interest in North Sea Culzean Field Development

• Unite Group to Buy Development Site in Portsmouth for £30M