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

UK 100 Index called to open -45pts at 6710, an overnight sell-off ushering the index back to 6700, maintaining a 3-day backtrack from the ceiling of a 3-week 6700-6850 channel. Support around 6700 bodes well so far this morning making for rising lows since yesterday’s worst. Bulls need a bullish break above 3-day falling highs at 6730 to open the door for a rally back to 6850. Bears require bearish a breach of 6700  to extend the downtrend. Watch levels: Bullish 6740, Bearish 6680.

A negative European open comes after a negative lead from the US was the foundation for a disappointing session in Asia overnight. Oil prices finally encountered some resistance post OPEC and the US dollar basket pulled back below 101. Investors are edging towards the side-lines ahead of the last US jobs report before the Fed next meets as well as political risk events in Italy and Austria this weekend and the OPEC-Russia meeting next week.

Japan’s Nikkei is down but outperforming peer indices, Yen strength derived from USD weakness weighing on exporters and lower oil prices denting Energy. Australia’s ASX is also suffering from the oil pullback while weaker metals prices hurt Miners along with fears of slower GDP next week. As Australia's biggest trading partner, China stepping up efforts to cool an overheated financial system (draining cash, restricting lending) is likely also playing a part coupled with a miss for South Korean GDP.

US equity markets closed mixed as the Dow Jones outperformed both the S&P 500 and Nasdaq indices due to the Tech sector once again lagging behind. The Dow’s positive session was underpinned by yet more strength in the Financials sector, whilst the Energy sector also benefited from Wednesday's OPEC production cut deal.

Crude Oil prices have come off their post-OPEC production cut deal highs having completed a 2-week bullish flag pattern, however both Brent and US both remain supported above $53 and $50. With a rally of 16% taking place over the past two days an element of profit taking can be expected by investors, whilst further analysis of the figures provided by OPEC might lead to some investor scepticism that the deal might not be adhered to by some members of the cartel.

Gold remains supported above yesterday’s 10-month lows of $1160 thanks to the looming European political event risk this weekend. However, the precious metal is unable to break back above $1180 as the downward pressure of an expected interest rate hike by the US Fed in a fortnight remains. Watch US jobs data this afternoon where hike-supportive data could send gold back down to fresh 10 month lows.

In focus today will be the November reading for US Non-Farm Payrolls, one of the final significant pieces of US macro data that will be considered by the Federal Reserve before its December 13-14 interest rate decision meeting, widely expected to result in 2016’s first and only hike. Also noteworthy in the jobs report data dump will be the headline Unemployment rate, although this is expected unchanged, along with the Average Hourly Earnings change for any indication of the widely forecast inflation rate pick up.

Elsewhere macro-wise, UK Construction PMI seen slowing slightly could have an impact on the UK Housebuilders, whilst Eurozone PPI is seen improving - the YoY figure reaching its highest figure since 2014 - much to the relief of ECB President Draghi. Other US data of note includes the latest reading of ISM New York and the weekly Baker Hughes Rig Count.

Speakers of note today all come this afternoon, with the BoE’s Haldane speaking at 12:40pm shortly before the Fed’s notorious dove Brainard at 1:45pm, whilst her colleague Tarullo speaks after European close.  Should the former Fed speaker hint at a hike might this provide the final indication that the FOMC will raise raise in a fortnight?

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

• Oil prices fall on concerns over OPEC – Russia production deal and profit taking
• UK housebuilder Berkeley says demand down 20 pct after tax hike, Brexit
• Laird proposes £185m rights issue, scraps 2016 div
• James Halstead says Brexit related stg fall helps overseas sales margins
• Johnston Press says Chairman Ian Russell to step down
• G4s reaches agreement to sell Israeli unit for £88m
• Rosneft says Moscow bourse registers its rouble bond programme
• Bupa Finance prices £400m 5% fixed rate subordinated notes
• GSK's lung drug gains approval in Japan
• Allied Irish continues to trade in line with expectations – CEO