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

UK 100 Index called to open +15pts at 7050, up off overnight lows thanks to sideways trading since yesterday’s weak close. The absence of any overnight test to the downside means a 2-day base may have formed at 7025-30 which could serve as a platform for another attempt higher. Bulls are watching for a break above yesterday afternoon’s 7060 highs. Bears are looking for a fallback to test the current 7030 floor. Watch levels: Bullish 7065, Bearish 7020.

A positive open comes after gains for US and Asian bourses overnight as investors regain poise following fears of a premature end and/or tapering of the ECB’s struggling QE programme. Still clearly addicted to easy policy. ECB minutes will likely be scrutinised even closer than usual this afternoon. Additional GBP weakness is providing the UK Index with more of the currency benefit that helped it back to highs earlier this week.

Japan’s Nikkei is higher despite a stronger Yen, helped by energy sector gains from the oil price rise. Australia’s ASX is being helped by positive macro data this week, including an improved trade deficit overnight, although energy gains are somewhat offset by losses for Gold miners after the yellow metal's sell-off in response to a stronger USD and ECB QE taper jitters. Note Chinese bourses closed for holiday.

US equities finished higher yesterday, buoyed by a brief boost in crude oil prices post-DoE EIA Inventories and predominantly solid macro data readings for the day. In particular, a very strong reading on the ISM Non-Manufacturing Composite (alongside yet more hawkish rhetoric from non-voting Fed member Lacker) helped to increase the chances of a November Fed Rate Hike to 30%.

Oil has retraced some of the gains made late yesterday on the announcement of a fifth weekly  drawdown in a row for US DoE EIA crude oil inventories. Does the overnight announcement by the Algerian Oil Minister of a possible 8-13 October meeting for OPEC and non-OPEC producers to discuss the implementation of the Algiers deal provide another platform for a surprise deal to be reached?

Gold is consolidating in a sideways channel, the vast sell off of Tuesday seemingly halted. Movements in the USD attributed to the reading of macro data are likely to have implications for the precious metal ahead of tomorrow’s all-important Non-Farm Payrolls data.

In focus today, amid a rather light macro line-up, will undoubtedly be the latest ECB minutes for any hints that the subject of tapering its struggling QE bond-buying stimulus programme was discussed at the last policy meeting. We think it highly unlikely, with growth and inflation flagging, but as we have learnt the hard way with central banks over the years: always expect the unexpected. Watch EUR.

Eurozone Retail PMIs can be analysed for clues about consumer confidence in the region (and its components), especially if a September escape from contraction can be built upon. We say this because an end-of-quarter jump above 50 has proved something of a theme so far this year before dropping back below. German Construction PMI will also be watched for whether it can hold or indeed add to its rebound from a June flirt with breakeven.

UK Unit Labour Costs for Q2 will of course be of interest, although with over 90% of the timeframe pre-dating Brexit, it is unlikely to have accelerated markedly since Q1 as a result of a weaker GBP increasing the cost base for UK businesses.

In the afternoon, with the US Jobs report looming tomorrow, US Challenger Job Cuts and Jobless Claims could sway sentiment to the downside should they disappoint like the ADP Employment Change print yesterday; especially as almost all US jobs data has an unhealthy influence over investor expectations for US monetary policy outlook at the moment. Watch USD.

Speakers to listen out for include German Chancellor Merkel and her Vice Chancellor Gabriel, the latter rather critical of Deutsche Bank earlier this week. They will be followed by the ECB’s Angeloni and EU President Juncker. What’s that you say - no Fed speakers today? Small mercies.

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

• BTG raises profit guidance on boost from the weaker pound
• Heathrow expansion would not break European pollution law - BBC
• Avation Plc says raised £4.5m from placing shares
• Dunelm Group says Q1 revenue down 1.8%
• SVG Capital agrees on terms for portfolio sale to Goldman, CPPIB
• Britain's BAE Systems sees more Typhoon orders, reiterates outlook
• Misys Group says IPO to raise £500m in LSE
• Ithaca Energy sees FY production ahead of forecast
• DFS Furniture full year core earnings +5.8%, full – year sales +7.4%
• Britain's easyJet says annual profit to fall on disruption, security woes
• Singapore court appoints KPMG as judicial manager for Swiber
• Coal rises from the ashes, rally to last until 2017
• London copper slips as China holiday crimps demand
• Oil prices ease from June highs on weaker physical market