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

UK 100 called to open +5pts at 6850, which might not sound that bullish but nonetheless represents a breakout beyond this week’s trend of falling highs. It also maintains the strong uptrend and recovery from last Thursday's 6720 lows. This keeps the Bulls hopeful of a return to last week’s highs of 6935, maybe even August’s 2016 highs of 6955. The Bears are watching for any suggestion that the aforementioned uptrend is in jeopardy, especially if we see any re-test of 6820. Updated watch levels: Bullish 6865, Bearish 6825

A flat opening call for the major indices comes in spite of negative US and Asian sessions as investors hunker down ahead of this afternoon’s ECB press conference, the first of what will be a busy month for central bank policy updates (BoE next week, both the BoJ and Fed the week after). Sentiment nonetheless buoyed by solid China Trade data showing reduced Exports contraction and accelerated Imports growth, coupled with stronger than first thought Japanese Q2 GDP.

Japan’s Nikkei is slightly offside on account of stronger Yen following that upgraded GDP data and on account of USD weakness. Australia’s ASX is being hindered by a stronger Aussie dollar, a currency often considered a proxy for Chinese growth on account of their strong trade links. That China trade isn't helping. Losses on Aussie equities are nonetheless tempered by a weak USD helping the Mining space and the oil price bounce supporting Energy.

Oil is expected to make moves today after overnight API data showed a surprising drop in oil and gas inventories, the largest in 30 years. Watch this space, as later today EIA data may confirm or dispel, which could see prices either maintain their recovery trend or sell off, especially with them toying with the highs of late last week: US Crude at $46.5, Brent at $48.8

Gold is still on its September uptrend thanks to a weaker USD and its sensitivity to monetary policy, especially in the US with a raging debate about future interest rate rises amid mixed macro data. Mote an uninspiring Fed Beige Book figures overnight. With the outlook for the Fed to raise interest rates in September continuing to diminish, there is potential for Gold to have another crack at $1350 and take another leg higher.

Focus today will be on the ECB press conference at 1.30pm given that expectations are very low we get any change to what are already negative rates. Real focus will be on the potential for ECB President Mario Draghi to announce downward revisions to the bank’s growth and inflation forecasts in light of an ever-struggling Eurozone region, especially following those German misses on Factory Orders and Industrial Production.

Thereafter, ECB-watchers and traders will be listening out for any clues about a firm extension to the current bond-buying programme beyond next March, this in spite of an ever-evaporating pool of available securities. Could we even get more tweaks to the program (yield ceiling, duration, securities) to allow it purchase more in its fight to spur inflation?

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

• EnQuest lowers production guidance after slow oil field start – up, appoints John Lennox as chairman
• British property website Zoopla sees earnings at top end of range
• Genus FY revenue -3% to £388.3m
• Monitise reports FY revenue in – line with its previous forecast
• National Grid Agrees 3-Year Rate Plan With 2 US Businesses
• Dixons Carphone sales beat forecasts, sees no Brexit impact
• Dixons Carphone First-Quarter Comparable Revenue Rose 4%; Upbeat on Outlook
• RBS prices $2.65bn 7-year bonds
• Worldpay: Bookrunner says upsized deal size by 50-350m shares