UK 100 Index called to open breakeven at 6775, having traded largely flat overnight in another tight 20pt range 6760-6880. However, the latest bounce from 6760 does means a ‘higher low’ versus yesterday’s 2-week base. It also breaks beyond the trend of falling highs since Monday morning whichbodes well for Bulls, although they may want to see 6790 bettered first. Bears will want overnight lows of 6760 to be breached. Watch levels: Bullish 6785, Bearish 6755.

Another flat European open comes in light of market jitters related to today’s OPEC meeting (cut, freeze, nada?) as well as Sunday’s political events risk with the Italian referendum representing a risk to the eurozone banking sector almost a decade after the financial crisis began and an Austrian election potentially seeing the Far Right take power.

Note this morning’s Bank of England (BoE) UK Bank stress tests showing capital shortfalls for RBS, Barclays and Standard Chartered under a doomsday scenario (GDP and house prices plunge, unemployment spikes, oil prices tank) - the most severe modelling to date. Note all three already implementing plans to rectify shortfalls, but RBS still needing to be monitored. With LLOY and HSBC passing expect some interesting share price movements within the sector this morning.

After a positive US close, Asian sentiment is troubled by Energy sector volatility and Mining sector weakness as metals prices give up more ground. Japan’s Nikkei higher thanks only to USD firmness and thus Yen weakness. Australia’s ASX in the red, dented by energy and materials. China also in the red after consumer sentiment pulled back.

US equity markets looked to regain some momentum yesterday as the run of record closes came to an end, with Healthcare and Real Estate providing a welcome boost whilst sliding oil prices weighed on Energy names. The technology focused Nasdaq outperformed its peers (up 0.2% vs Dow & S&P +0.1%) with the pivotal OPEC meeting holding the key for the course of today's session.

Crude Oil prices are rallying (Brent at $48, US approaching $46) on remarks from the Iraqi oil minister that a deal will be reached by OPEC today, however with the cartel’s track record, his comments can be taken with a healthy amount of scepticism. Prices today rely almost entirely on the outcome of the 9am ministers’ meeting at the group’s HQ (press conference 4pm this afternoon), with a deal leading to a sharp rally whilst anything else will likely send price per barrel spiralling downwards. It’s crunch time in Vienna.

Gold remains supported on heighten3ed European political risk helping the precious metal to trade off its 9-month lows of last week, although remains in a tight $1185-$1195 narrowing trading pattern. A failed overnight challenge at this week’s falling highs resistance doesn’t bode well for the prospects of the safe haven asset as the wider rally in metals post-US election comes to an end.

In focus this morning will be digestion of the Bank of England UK Bank Stress tests in which RBS, Barclays and Standard Chartered all showed capital shortfalls to the BoE’s doomsday scenario (Growth and house prices plunge, unemployment spikes, oil tanks). The OPEC meeting in Vienna is also sure to keep us on our toes (cut, freeze, nothing?).

In terms of data, listen out for German Unemployment just before 9am, although little change is expected. Eurozone Consumer Price Inflation (CPI) is forecast a little firmer in November, a good sign for Draghi.

This afternoon, US ADP Employment change will be watched for clues about what Friday's Non-Farm Payrolls jobs report could deliver. US Personal Income and Spending will also let us know whether Americans are spending or saving more of their income, and what the latest trend is on stateside price inflation. Note the Chicago PMI seen jumping higher while Pending Home Sales stagnate before those all important volatility inducing Weekly US Oil Inventories.

Speakers include ECB President Mario Draghi around midday followed by the Fed’s Kaplan. Just before the European close the ECB/Bundesbank’s Weidmann talks before the Fed’s Powell and Mester tee us up for the latest Fed Beige book readings.

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

• Greene King says H1 pretax profit up 9% to £92.5m
• Breedon Group to buy Sherburn Minerals for £15.7m
• Kier says has good revenue visibility over next three years
• IGas says in continued talks with key bondholders, strategic investors
• Vodafone and Starhub renew strategic partnership agreement for Singapore
• Engineer Spirax – Sarco buys Aflex Hose for £61.4m
• Premier Oil gets monthly deferral for test of its financial covenants
• Britvic reports about 10% rise in FY revenue
• Super Group buys UK rental fleet provider Motiva
• Online trading company IG posts ‘strong’ second quarter
• Telford Homes says Brexit does not change growth targets, profit forecasts
• RBS says to take action to improve capital after failing stress test
• Zoopla shrugs off Brexit as profits surge
• Brewin Dolphin FY funds up 10.6% to £35.4bn
• IG Group continues to perform in line with expectations after a strong Q2
• Lloyds not required to take any capital action after BOE stress tests
• Bank of England sees "challenging" outlook for UK financial stability
• Centrica goes ahead with $630m oilfield off Norway
• Oil rises 2% as Iraq delegate says will be OPEC deal on Wednesday