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

UK 100 Index called to open -10pts at 6975 for the final session of the week, having briefly spiked at 7010 yesterday evening but now continues downtrend. Bulls will be looking for a breakout from 2-week falling highs resistance to maintain a position above 7000 to close a choppy week of trading, while Bears will yet again hope the downtrend is maintained, with a weak morning performance paving the way for a fall to 6900. Watch levels: Bullish 7005, Bearish 6920.

A negative opening call comes as expectations that the US Federal Reserve will hike base interest rates in December rise once more on strong US macro data reported yesterday evening while a mixed bag of overnight earnings from the US companies also weighs on market sentiment. Fallout from RBS’s Q3 earnings (and more importantly reporting it will miss long term targets/fail to offload Williams & Glyn branches by 2017 deadline) are likely to impact on the market this morning as the bank posts a loss on the back of increasing costs. US GDP data for the third quarter will likely impact FX markets, any figure to the upside strengthening the dollar and subsequently moving the predominantly foreign currency earning UK 100 .

Asian markets finished the week mixed as Japan’s Nikkei gained 0.5% while Australian peer index the ASX fell 0.3%. A wave of Japanese macro data helped the index to buck the regional trend, whilst a rising oil price did nothing to help the Australian index offset the declines made from the heavily weighted Financial sector.

A mixed bag of earnings in the US contributed to US equity markets closing lower yesterday, with Ford and UPS in the red after disappointing Q3 earning figures were released before the opening bell. The Dow was 0.2% lower, the S&P fell 0.3% whilst the Nasdaq lagged behind once more, down 0.7%. After hours reporting from Alphabet emphatically beat expectations, while online peer Amazon missed expectations by a long way, falling over 6% in after-hours trading.

Crude oil prices continue to steadily rise as reports released ahead of today’s meeting suggest that OPEC are ready to cut output by 4%, however Russia remains tentative on signing any deal to cut output, instead opting for a freeze of output. Today’s meeting of OPEC members is likely to produce a wave of production related statements over the course of the day, with the potential for greater swings in price over the trading session. Gold price is also continuing to rise, on track for a second straight week of gains as the USD steadies ahead of US Q3 GDP data.

The main event in focus today is US Q3 GDP data released at 1:30pm. With predictions of a December Fed rate hike already rising, will GDP figures surprise to the upside (mirroring those from across the pond yesterday) and cement expectations above 90%?

Also in focus today, France and Germany release inflation figures at 7:45am and 1pm respectively, with a multitude of Eurozone Confidence Indicators splitting the difference at 10am. Other US macro data includes Personal Consumption, Core PCE and Employment Cost Index figures are all reported simultaneously alongside the GDP data, with the University of Michigan Sentiment at 3pm and Baker Hughes rig count at 6pm to round off the week.

Also note the possibility of S&P to update the UK’s sovereign credit rating today after some pessimistic comments made towards the latter end of last week amid concerns of the plummeting pound after the UK vote to leave the EU.

The meeting of OPEC oil ministers today is likely to provide a torrent of statements throughout the course of the day, adding increased volatility to Crude Oil markets’ already choppy waters. Will it back to the old ways of agreeing to disagree or can they conjure up another surprise deal a la September?  The ECB’s Coeure and Lane both take to the stand this morning where, once again, all ears will be pricked for any guidance on potential tinkering to the ECB’s bond buying programme.

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

• Recovering Anglo American sticks to asset sales but with less haste
• Anglo American pleads guilty in Australia coal mine death
• RBS sinks to third – quarter loss on misconduct, restructuring charges
• Royal Bank of Scotland Q3 loss of £469m
• IAG cuts 2016 forecast on sterling weakness
• Tullow completes redetermination of loan facility
• Spirax – Sarco says Kingston to chair remuneration committee from Nov 1
• Smiths Group agrees £250m pensions buy – in policy
• Morgan Advanced raises $112m and 60m Euros via private placement
• Alliance Pharma names exec director Butterfield as deputy CEO
• Bank of Ireland net interest margin improves in Q3
• AB InBev cuts guidance due to weak Brazil beer market
• Oil prices set for weekly drop on doubts OPEC can coordinate output cut