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

UK 100 Index called to open +30pts at 7030, after an overnight bounce from 7000 saw it trade as high as 7070 before easing back in the last 90mins. The fact that 7000 held up yesterday reinforces the likelihood that Monday’s resistance has turned to support. This bodes well for Bulls hoping for another bounce to flirt with all-time highs. Bears remain eyeful of any test of 7000 for the potential of a retrace to 6900 at least. Watch levels: Bullish 7045, Bearish 6995.

A positive UK Index open is rather perversely derived from a 6% overnight flash crash in GBP that has provided the UK index with another currency fillip for its overseas-exposed contingent. Blame is being pinned on a cocktail of; 1) timing (late US, early Asian trading lull); 2) Thin volumes ahead of this afternoon’s US Jobs report; 3) hardball Brexit talk from French President Hollande reviving fears after the UK PM’s own speech this week, and, 4) Assumptions of a ‘fat finger’ error and/or  automatic trading/stops being triggered.

The Dax and Dow are nonetheless called lower as investors hunker down ahead of the latest update on the state of US employment before updating their assumptions on the timing of the Fed’s next interest rate hike. Next month before the election as some have proffered? Or December like last year as another early Christmas present?

Japan’s Nikkei hindered by a strong Yen while the Aussie ASX is held back by mild commodity price weakness and a lack of lead from China which is closed for Golden week.

US markets closed flat as investors priced in positions before today’s Non -arm Payrolls release. Wal-Mart and American express dragged the Dow Jones downwards after the former sees a slowing of its store expansion programme.

Oil continues on its post-OPEC deal uptrend, with some sideways trading overnight after losing the traction gained from US inventory drawdowns, leaving both US and Brent crude in the channel’s middle although remaining above $50 per barrel. Could an unofficial meeting of OPEC members and non-OPEC Russia taking place on the side-lines of an Istanbul energy conference that begins this weekend lead to further production "agreements"?

Gold suffered a further breakdown of support as the US Dollar continues to strengthen, last night’s flash sell-off of GBP only contributing to USD’s charge. It remains perilously close to pre-Brexit lows, the strong support it provides being the saving grace from the precious metal falling below the $1250 mark in what is gold’s worst weekly performance since November 2015.

In focus today is this afternoon’s US Jobs report with all eyes on the Non-Farm Payrolls additions number (remember ADP disappointed on Wednesday) as well as the stateside unemployment figure. Both can sway market sentiment on the outlook for US monetary policy which, at the moment, means the timing of the next interest rate hike. November? December?

Closer to home, watch out for UK data in light of this week’s revival of hard Brexit fears and the GBP’s plunge. Data this morning includes UK Halifax House Price growth seen flat in September but slower over the year. The same is expected for Aug Industrial Production, but manufacturing may show a rebound and steady annual growth.

Lots of soundbites expected from the IMF/World Bank meeting in Washington, with IMF Chief Lagarde critical of Deutsche Bank, saying banks must overhaul their institutions. Also speaking at the event are ECB Chief Economist Praet - just after the US jobs report - followed by the Fed’s Fischer, Mester, George and Brainard. What will the fad have to say after a conspicuous absence yesterday?

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

• UK's CMA says Future, Mirua deal could face investigation
• BP to set up fuel stations in India, challenge state firms' dominance
• Workspace granted planning consent for redevelopment in Hackney
• Return of power to BHP's Olympic Dam mine delayed due to high winds
• UK's UK Index 100 futures rise after new slump in sterling
• Sepura secures contract to provide hand – portable radios
• Brammer Plc says does not expect to report pre – tax profit for 2016
• HarbourVest extends offer deadline for SVG Capital
• XP Power says revenue for nine months to Sept 30 +13%
• Astrazeneca divests rights to Rhinocort Aqua outside US
• Sterling shaky after diving to 31–year low on “hard” Brexit fears
• London copper set for biggest weekly loss in six weeks
• Entire oil futures curve moves above $50 as financial confidence in crude rises
• AJ Lucas says Cuadrilla wins consent to test flow of gas at UK site