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

UK 100 Index called to open -25pts at 6990 as the index falls into a downtrend that began late Friday morning, dipping below the 7000 mark for the open for the second session in a row. Bulls will yet again be hoping for the 7000 mark to be conquered and all-time highs once again challenged this week, whilst Bears will be hoping the downtrend will continue to see the UK Index back down to October lows of 6900. Watch levels: Bullish 7025, Bearish 6965

Calls for a negative open come as markets digest comments from US Federal Reserve Chair Janet Yellen on Friday that carried a slight dovish rhetoric, seeing the USD remaining near 7-month highs. European markets are expected to remain cautious in the run up to Thursday’s meeting of European Central Bank policy makers as US Q3 earnings releases continue after a strong showing from heavyweight financials JP Morgan and Citibank on Friday.

Overnight trading in Asia was mixed, with Japan’s Nikkei closing +0.3% on the back of BoJ Governor Kuroda’s comments that the Japanese economy remains in a moderate recovery. Elsewhere, the Australian ASX fell 0.4%, led by a sharp decline the Energy sector, impacted heavily by falling Oil prices.

Crude Oil prices fell once again on news that the Hughes Baker Rig count showed an increase for the 16th week in a row to the highest level in 8 months. A strange dearth in the amount of announcements from OPEC and Russia regarding a production freeze deal on Friday is unlikely to be continued as producers attempt to prop up prices once again. Gold, however, sees a slight increase as bargain hunters invest in the precious metal as prices remain near 4 month lows, despite the rising possibility of a December rate hike by the US Fed.

In focus today, Eurozone Consumer Price Index inflation rates will be highly scrutinised before Thursday’s looming ECB monetary policy update. Expectations for a slight increase will be welcomed by Draghi et al. as a sign that the ECB’s current asset purchase programme is reaping the desired results.

The afternoon’s US data begins with the Empire State manufacturing survey, expected to show an expansion from last month’s negative reading, after which Industrial and Manufacturing Production are announced alongside Capacity Utilisation. The former are both expected to show positive readings after last month’s negative values, whilst the latter is expected to show a marginal increase.

On a light day for speeches, a meeting of EU Foreign Ministers in Luxembourg could provide a snapshot of continental Europe’s sentiment towards the UK’s impending EU exit, while a speech from the US Federal Reserve’s Vice Chair Stanley Fischer after UK market close will be closely watched for any further hint towards a base rate hike before the end of the year after Chair Janet Yellen’s slightly dovish remarks on Friday.

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

• Robert Walters reports strong UK growth following Brexit vote
• Acacia Coal says AJC to acquire Riversdale Anthracite Colliery from Rio Tinto
• Rosneft Oil acquires 49% of Essar Oil Limited
• Cost cuts help Pearson to reiterate targets amid tough trading
• SSE agrees to sell 16.7% stake in gas distribution business
• Ladbrokes, Gala Coral to sell 359 shops ahead of merger
• Unite Group secures planning consent for Liverpool site
• Londonmetric acquires distribution warehouse for £7.5m
• Wincanton extends maturity of banking facility to 2021
• Biffa prices London IPO at 180p/shr, to list Oct. 20
• Russia's TCS Group sees net profit growing 20-40%/year in 2017 – 2019
• Skanska signs UK road maintenance deal worth £245m
• Oil prices fall on rise in U.S. drilling, strong dollar