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

UK 100 Index called to open flat at 7020, still trying to challenge for 4-day highs although unable to make headway overnight. The uptrend of the last 4 weeks remains intact, with rising support at 6980, but Bulls will be looking for a print above 7040 to revive hopes of another attempt at fresh all-time highs. Bears will be hoping for another retrace to test rising support at 6980. Watch levels: Bullish 7040, Bearish 6990.

A flat opening call comes in spite of positive US and Asian sessions with investors interpreting Hillary Clinton as solidifying perhaps even extending her poll lead over Trump following last night’s final televised US presidential debate. The election is now less than three weeks away and the USD, as expected, has ticked higher, which could weigh on the UK Index , a Fed rate hike now more likely based on the perception of a more stable political leadership outcome.

Japan’s Nikkei is outperforming thanks to a stronger USD translating to a weaker Yen, benefiting exporters. Oil prices holding around their recent highs is also playing their part to help Energy names. Australia’s ASX is, however, underperforming after disappointing employment data send the AUD lower, while a stronger USD and a Rio Tinto iron ore guidance (echoing BHP Billiton's similar guidance yesterday) cut holds back raw materials prices and the Miners.

US equities finished the trading session predominantly higher, with the Energy sector and Tuesday's earnings-beating Goldman Sachs leading the Dow Jones to a gain of 0.2%. Elsewhere, the S&P 500 also closed 0.2% higher, while the NASDAQ composite closed virtually flat. Overnight after-market earnings releases saw both eBay and Intel missing forecasts, whilst American Express beat forecasts by over 20%.

Crude oil prices have retreated overnight as profit taking by investors following a surprise 5.2m barrel inventories drawdown that led Brent crude to post 12-month highs yesterday evening. US crude also saw prices approaching 2016 highs, although failed to reach the highs of its counterpart after the DOE EIA inventories data release. OPEC production cut confidence is still running high, helping to support prices.

Gold showed little reaction to last night’s US presidential debate and is now strengthening in the run up to today’s ECB monetary policy update having broken out (bullish two week triple bottom reversal) above $1265 from a two week trading channel yesterday. The yellow precious metal, sensitive to monetary policy updates, is likely to be one of the largest movers today in reaction to the ECB meeting, while any potential strengthening of the Euro against the US Dollar would also see the gold price rise.

Today’s focus will be the ECB policy update. No change expected to headline rates but markets are itching to know what Draghi’s plan is (or isn’t) in terms of its QE bond-buying stimulus programme; especially after this month’s ‘taper tantrum’. Increase monthly purchases? Purchase beyond March? Change the makeup of purchases? Lower the negative yield threshold? Some, even all of the above?

Data-wise this morning, it’ll be interesting to see whether UK Retail Sales adds to the flow of post Brexit data that has done anything but signal panic and collapse since end-June. September is seen showing a retail rebound from a weak August although the annual rate is likely to have slowed.

In the afternoon, weekly US Jobless Claims - forecast flat - are sure to be eyed for evidence about the state of the US economy and its ability to weather another Fed rate rise by end year, itself likely still dependent on both the US election result and what peer central banks do.

The October Philly Fed probably normalised after a strong September and 18-month high. After divergent US housing data yesterday, Existing Home Sales will be looked to for more evidence while the US Leading Index may have rebounded in September.

Speakers of note this afternoon include the Bank of England’s Shafik, ECB President Draghi at his policy update press conference and the Fed’s Dudley. We also have UK PM Theresa May participating at the EU leaders summit in Brussels, hoping to urge for a smooth Brexit. To close the day, German Finance minister Schaeuble speaks after the European market close.

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

• UK's CMA says undertakings might be accepted in Future – Miura deal
• Workspace Group disposes two residential properties
• Ladbrokes says Coral Group Q4 net revenue +8.9%
• Sky says British customers can sign up for mobile from Oct. 31
• LSE Group Q3 income jumps 19%, beats estimates
• Segro says liquidity starting to return to UK investment market
• Ground engineer Keller says will be hit by tough trading in Asia
• Spain's Bankinter posts 12% rise in Q3 net profit, beats forecast
• Heathrow 9 – month revenue, earnings rise
• Senior PLC warns on 2016 performance due to heavy truck drag
• Glencore to sell Australia coal haulage unit for $874m
• Rathbone Brothers total funds under management +8.5% in Q3
• Man Group to repurchase 66m shares
• Pernod Q1 sales beat forecasts with U.S, improving China
• Norwegian Air sees faster 2017 capacity growth after record Q3 earnings
• Nestle cuts sales outlook as 9-month organic growth disappoints
• BHP spends $2m a month on nickel unit as recovery looms
• Oil prices dip after strong rally, but sentiment remains confident