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

UK 100 Index called to open +65pts at 6765, back up testing resistance in a shallow rising channel with bulls looking for another breakout to take the index back towards the 27 Jul high 6779. Bears on the other hand will note the failure of last week’s breakout and bet on the index pulling back at least as far as 6700 with a further bonus 25 points to 6675. Both bulls and bears will see major moving averages offering support at 6733 and 6723. Updated watch levels: Bullish 6785, Bearish 6745.

A positive open comes off the back of a positive Asian session in which the Yen pulled back from its post-BoJ show of strength, boosting the Nikkei index. On the mainland, Chinese manufacturing data came in mixed, while the non-manufacturing segment edged up, encouraging for those watching China’s transition to a more services led economy.

US equity markets closed out last week mixed amid more earnings reports and a first look at the US Q2 GDP estimates which disappointed, Still, it’s just the first estimate so not too much to worry about right now. Note that markets could well latch onto a combination of the fact it’s just the first estimate (not too much to worry about fundamentally) and the fact it also makes an imminent rate hike less likely (cheap money for longer). Therefore we could see US equities start the week on the front foot.

Dallas Fed Governor Kaplan sought to ease GDP concerns while being totes original in calling for a gradual and patient approach to raising rates. Dudley also said that, while prudence would be a good thing when it comes to policy, those pricing out a rate hike in 2016 should watch their backs. This may or may not have an effect on the USD today given Friday's sharp sell off.

A weaker US Dollar has been good for Gold over the weekend, seeing the yellow metal break out above the ceiling of its late Jul rising channel, with that trend line now acting as support - although being tested this morning. A bounce would be encouraging for bulls looking for $1355. Bears will see Friday’s USD weakening as overdone and expect a rebound, which could put Gold back in its box.

Brent and WTI are off their lows but trading at 21 Jul falling highs. A bounce in the USD could put pressure on crude prices today. Note the Baker Hughes Rig Count was neither here nor there on Friday (an increase of 1) while it remains to be seen how the US gasoline glut is going.

In focus today will the be fallout from the weekend's Chinese macro data as well as a raft of manufacturing PMIs from Europe and the US.

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

• Vedanta Resources Q1 mined metal production stable versus prior quarter
• Petrofac says no evidence found that any director was aware of alleged Unaoil misconduct
• Lonmin Q3 mined platinum ounces up 3.3 pct to 166,581 ounces
• Intertek H1 revenue rises, sees no Brexit impact on growth opportunities
• Hutchison China, AstraZeneca amend savolitinib co – development agreement
• Ultra Electronics says post – referendum factors may delay government commitment
• Acacia Mining buys minority stake in West Kenya JV from Lonmin
• Keller H1 revenue of 850 mln stg, up 12 pct
• GVC Holdings says transfers to premium listing
• Qatar Airways lifts stake in BA – owner IAG to 20 pct
• GSK creates $715 mln bioelectronics company with Alphabet unit
• Inmarsat says no intention to make an offer for Avanti
• Burberry buys remaining stake in China business for 54 mln stg
• Oil rises after month of steady decline but oversupply still weighs